The clause only works as intended if the seller's agent discloses the actual amount of a competing offer, and Saskatchewan practice does not require that disclosure, so a buyer using one can end up negotiating without knowing the real number they are being raised against.
Triggering the clause also reveals your ceiling to the seller's side, and a seller can simply counter back near that cap instead of accepting outright, which sometimes leaves a buyer no better off than a single firm offer would have.
Whether it helps on a specific listing depends on how much real competition is actually there, which Joel Dyck can gauge better than a clause written before any offers exist. Get your hand-reviewed valuation from Joel Dyck.