two different types of claims on a blue and white background

01-Escalation: -Escalation refers to the anticipated increase in the cost of labor, materials, equipment, or other project-related expenses over time. -It is a recognized and expected upward adjustment in prices due to factors such as inflation, market conditions, changes in material costs, or fluctuations in supply and demand. -Escalation is typically accounted for in the initial project budget and contract pricing. 02-Claims: -Claims, on the other hand, are formal requests made by one party (often the contractor) to seek compensation or resolution for additional costs, delays, disruptions, or other issues encountered during the construction project. -Claims arise due to unforeseen circumstances, changes in project scope, design errors or omissions, delays caused by the owner or other parties, or breaches of contract.