Cost Escalation Claims in Construction Projects
The construction industry is highly dynamic and influenced by several economic, contractual, and market-related factors. One of the major challenges faced by contractors, project owners, and infrastructure developers is the sudden increase in the cost of materials, labor, fuel, machinery, and other project-related expenses during project execution. These unexpected increases often result in financial disputes and lead to what are commonly known as cost escalation claims. Cost escalation claims have become increasingly common in infrastructure, real estate, highway, railway, airport, and industrial projects across India and globally. In recent years, rising inflation, supply chain disruptions, global economic uncertainty, and fluctuating commodity prices have significantly impacted construction project costs. As projects become more complex and long-term in nature, organizations increasingly depend on techno legal consultants and construction claims consultancy services to manage ...