In a market the Saskatchewan REALTORS Association reports at 1.63 months of supply, multiple-offer situations happen often enough that the tactic comes up regularly, but a seller's agent presenting offers can see exactly where your cap sits once the clause triggers, which weakens your negotiating position on anything beyond price.
A cleaner alternative is a strong initial offer with realistic, clearly dated conditions and a personal letter or gesture that shows you are a serious, prepared buyer, which often competes just as well without disclosing your absolute limit.
If you do use an escalation clause, cap it at a number you would genuinely pay outright, since a seller can structure a counter-offer that pushes you right to that ceiling.
Get your hand-reviewed valuation from Joel Dyck.