Rise and Fall Clause

The Rise and Fall Clause is a provision in a building contract that allows the price of a property to move up or down according to changes in construction expenses. This may include worker wages, the price of fuel and construction materials, and other common factors, all of which must be specified in the clause. Price movements may be monitored based on published indices or on the builder's own list. In the case of the latter, the material must be drawn from official sources and agreed upon by both parties.