Eskalasi dalam Proyek Multi Years

Abstract

Escalation is the adjustment of the unit price of contract components which include labor, construction
materials, energy and equipment to the contract value at the time of bidding. Escalation can be
interpreted as a provision or reserve on the estimated cost intended to cover the increase in the price
level due to time. The escalation component is obtained from the unit price of an item which is divided
into labor, materials, and wages. The three components are used as a coefficient that will be calculated
with the price index from the Central Statistics Agency. Escalation is a must for a contractor because
price increases are something that cannot be controlled and will inevitably occur in accordance with
inflation, but must be in accordance with the contract documents required for every construction work.