How contracts escalate
Every clause in the sample is sorted by the way it moves the price. The chart counts clauses by method, out of 378 in total.
- Composite: 143 clauses (37.8%)
- Two or more indexes or cost parts in one formula, for example labor on a wage index and materials on a PPI.
- PPI-linked: 89 clauses (23.5%)
- The price moves with a producer price index, usually one for the main material or product.
- Other: 56 clauses (14.8%)
- An adjustment method that does not fit the groups above, such as a negotiated price review.
- CPI-linked: 52 clauses (13.8%)
- The price moves with a consumer price index, the general inflation measure.
- Actual cost pass-through: 22 clauses (5.8%)
- The seller passes on documented changes in its own costs, such as wage rates or material invoices.
- Labor cost index: 8 clauses (2.1%)
- The labor part of the price moves with a wage or employment cost index.
- Catalog price: 5 clauses (1.3%)
- The price follows changes to the seller's published catalog or list price.
- Fixed percent: 2 clauses (0.5%)
- The price rises by a set percentage on a schedule, with no index involved.
- Market basket: 1 clauses (0.3%)
- The price follows a published basket or market price for a group of goods.
By contract type
The same numbers split by the kind of agreement the clause sits in. A dash means no clause of that type states the figure.
| Contract type | Clauses | With a cap | Median cap | Median interval | Most common method | Top index |
|---|---|---|---|---|---|---|
| Supply of goods | 210 | 27.6% | 6% | 12 months | Composite | CPI (US) |
| Services | 68 | 32.4% | 3% | 12 months | CPI-linked | CPI (US) |
| Energy | 31 | 12.9% | 6% | 12 months | Composite | PPI: Commodities Finished Goods |
| Transport | 22 | 40.9% | 2% | 12 months | Other | PPI: Support activities for Oil and Gas… |
| Construction | 17 | 11.8% | – | 1 month | Other | Alabama Department of Transportation As… |
| Finance | 9 | 0% | – | 12 months | CPI-linked | CPI (US) |
| License | 9 | 11.1% | – | 12 months | Composite | CPI (US) |
| Other | 9 | 0% | – | 12 months | CPI-linked | CPI (US) |
| Government standard clause | 3 | 0% | – | 12 months | Actual cost pass-through | – |
Caps and floors
A cap limits how far the price can rise in one adjustment. A floor limits how far it can fall. A trigger threshold means nothing changes until the index moves by a set amount.
- 3% or less: 12 clauses
- Over 3% to 5%: 5 clauses
- Over 5% to 10%: 9 clauses
- Over 10%: 2 clauses
How often prices adjust
The interval between price adjustments, where the clause states one. Clauses without a fixed interval usually adjust on request or at renewal.
- Monthly: 15 clauses (4%)
- Quarterly: 10 clauses (2.6%)
- Every six months: 3 clauses (0.8%)
- Annually: 220 clauses (58.2%)
- Other interval: 1 clauses (0.3%)
- Not stated: 129 clauses (34.1%)
Most-cited indexes
The indexes named most often in the sample. Different spellings of the same index are counted together, and a clause that names an index twice counts once.
- CPI (US): 112 clauses
- ECI (US): 46 clauses
- PPI (general): 12 clauses
- PPI: pcu325412325412 for Pharmaceutical Preparation Manufacturing: 9 clauses
- PPI: Commodities Finished Goods: 7 clauses
- PPI: Pharmaceutical Preparation Manufacturing (Series ID: PCU325412325412: 6 clauses
- PPI: U.S. Bureau of Labor Statistics Oil Field and Gas Field Drilling Machinery (Series ID WPU119102: 6 clauses
- PPI: Pharmaceutical Preparation Manufacturing (Series ID PCU325412325412: 5 clauses
- PPI: Support activities for Oil and Gas Operations ( -Oil and Gas: 5 clauses
- Department of Energy Weekly U.S. National Average Retail On-Highway Diesel Price: 3 clauses
- Argus Americas Crude: 2 clauses
- CFM56-5B Spare Parts Price Catalog: 2 clauses
Source contracts
Every public document behind the numbers above, with a link to the original filing or regulation. Showing 25 of 378.
Methodology
The clauses come from three kinds of public documents:
- Contracts filed as exhibits with the SEC and published on EDGAR.
- Price adjustment clauses in the Federal Acquisition Regulation and agency supplements, read from eCFR.
- State DOT price adjustment specifications.
An AI model reads each document and pulls out the escalation clause and its terms. A clause is kept only when the quoted text is found word for word in the source, and every cap, floor and trigger number appears in that quote. Leases are left out.
These numbers describe this sample of public documents. They are not a survey of all contracts, and they are not legal advice. The page is updated as more contracts are added. The newest document in the sample is dated 2026-09-23.