The clause only works if the seller's agent discloses the competing offer's actual amount, and Saskatchewan practice does not require that disclosure, so an escalation clause can leave you negotiating somewhat blind compared to how it is marketed.
It also signals your ceiling to the listing side once triggered, which can work against you if the seller simply counters back near your cap rather than accepting outright. A firm, well-researched offer at your real maximum is often just as effective and clearer for everyone involved.
Whether it helps depends on how tight the specific listing's competition actually is, which your agent can gauge better than a clause written before any offers are in. Get your hand-reviewed valuation from Joel Dyck.