Index lookup · WPU801
Producer Price Index for new nonresidential building construction, a partial output price index for the finished construction service itself rather than for any single material input. Index base: June 2009 = 100.
Latest value is 1 month old. Next update expected around Sep 2026.
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Enter a base value, a current value, and a contract amount to see the adjustment.
Strongest average month-over-month move historically: July (+1.2% avg).
Owner and general contractor guaranteed maximum price contracts occasionally reference this output index as a total project cost benchmark rather than an input material escalator, since it reflects bid pricing across labor, materials, and margin together. It is a poor fit for escalating a single material line item because it cannot isolate what drove any change.
A starting point citing this series by name and code. Replace the bracketed terms with your contract's actual scope before use.
The [affected portion] of the Contract Price shall be adjusted using US PPI — New Nonresidential Building Construction (BLS series WPU801), published by BLS. Base Period: the index value published for August 2026 (or the month of contract signing, if different) is the Base Value. Adjustment: at each Adjustment Date, the Current Value is the most recently published three-month average of the index (the Averaging Window). The Escalation Factor equals Current Value divided by Base Value. Cap: the Escalation Factor applied under this clause shall not exceed 1.10 or fall below 0.90 (a 10% cap and floor) in any single Adjustment Date, regardless of the index's actual movement. [Replace bracketed terms with your contract's actual affected-portion definition and adjustment-date schedule before use. This is a drafting starting point, not legal advice.]
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Price escalation in a construction contract is a clause that adjusts the contract price for movements in the published price of a named material, fuel, or labor cost after the bid. It shifts material-price risk from the contractor to the owner, within a defined base period, formula, and cap.
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