Escalation Clauses

An escalation clause is a contractual provision used in bids, especially for real estate or procurement, that automatically increases the offer price in response to competing bids. It sets a maximum limit and a specified increment by which your offer will escalate if someone else bids higher. This allows the buyer or bidder to stay competitive without constantly monitoring the process, ensuring their offer remains attractive up to their comfort level. Essentially, it’s a way to show confidence and stay competitive while controlling the maximum amount willing to be paid.