Last updated: 2026-09-02 · 5 min read
What Is a Price Escalation Clause in a Multi-Year Mold Program?
A price escalation clause is a written rule that adjusts program prices during a multi-year agreement when defined input costs — resin, steel, energy, labor — move beyond a threshold, with the adjustment calculated from a named index and capped by an agreed formula. It exists so neither side renegotiates from scratch when the market moves: the buyer gets continuity and a ceiling, the supplier gets protection against inputs it cannot control, and both get a formula instead of a fight.
Process parameter — A controllable variable in the injection molding process: melt temperature, injection speed, holding pressure, cooling time, mold temperature. Each parameter affects part quality — deviations cause defects. Parameters are set during T1 and locked for production. See also related guide.
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