Pavement Escalation Verbiage for Owner Proposals
Due to the recent price fluctuations and volatility in the crude oil market, the pricing for asphalt paving contained herein (i.e. BAM, Binder Course and Surface Course) is based on the Bituminous Price Index as published by IDOT and is therefore subject to change. The Bituminous Price Index (BPI) method for adjustment will be based on the following; The pricing contained herein shall remain in effect and unchanged for the duration of the contract for all labor, materials and equipment necessary for the performance of the work with the exception of the new oil used in the bituminous materials. New oil cost adjustments will be made to provide additional compensation to the General Contractor, or credits to the Owner for fluctuations in the cost of new oil used in the bituminous materials. The adjustments shall apply to permanent and temporary hot-mix asphalt (HMA) mixtures. The adjustments shall not apply to bituminous prime coats, tack coats, crack filling/sealing, or joint filling/sealing. The price for the new oil used in the bituminous materials is based on the Bituminous Price Index as published by the Illinois Department of Transportation (IDOT) for the month of_______ showing the amount per ton as $___________. The General Contractor on behalf of the owner includes an escalation of _____% to the published price per ton shown above thereby revising the price per ton to $________, to soften any price spikes that may occur over the span of the paving portion of work. The General Contractor includes the following;
1. BAM
A. Total tons of liquid asphalt (New Oil)
Tons_________________ Mix _________________
B. Mix design
2. Binder
A. Total tons of liquid asphalt (New Oil)
Tons_________________ Mix _________________
B. Mix design
3. Surface course
A. Total tons of liquid asphalt (New Oil)
Tons_________________ Mix _________________
B. Mix design
4. Other
A. Total tons of liquid asphalt (New Oil)
Tons_________________ Mix _________________
B. Mix Design
The following method for price adjustment will be used to determine the amount of money to add or deduct to the contract price for the bituminous materials;
Method of Adjustment. Bituminous materials cost adjustments will be computed as follows; CA= (BPI P – BPI L ) x (%AC V / 100) x Q Where: CA = Cost Adjustment, $. BPI P = Bituminous Price Index, as published by the Department for the month the work is performed, $/ton.
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