Buyer price escalation clause. Any limits?

[Arjun S.]

Hello,

I have a contract with a builder that has the following clause and I am being told I need to pay 10% over the previously signed contract price due to increase in lumber price (which seems to have fallen 3X since I signed contract in late April this year). Is there any limit on the % by which they can raise the build cost? What are my options?

14. PRICE ESCALATION

In the event of significant delay or price increase of material occurring during the performance of the contract through no fault of the Contractor, the contract sum, time of performance, and contract requirements shall be equitably adjusted by change order in accordance with the procedures of the contract documents. A change in price of an item of material shall be considered significant when the price of an item increases 5% percent between the date of this contract and the date of installation.