Pavement Escalation Verbiage for Subcontract Agreement
Subcontractor warrants and represents that 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 Subcontractor, or credits to the General Contractor 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. Subcontractor’s 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 $___________. Subcontractor 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 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. BPI L = Bituminous Price Index, as published by the Department for the month prior to the letting, $/ton. %AC V = Percent of virgin Asphalt Cement in the Quality being adjusted. For HMA mixtures, the % AC V will be determined from the adjusted job mix formula. For bituminous materials applied, a performance graded or cutback asphalt will be considered to be 100% AC V and undiluted emulsified asphalt will be considered to be 65% AC V.
Q
= Authorized construction Quantity, tons.
Basis of Payment. Bituminous materials cost adjustments may be positive or negative but will only be made when there is a difference between the BPI L and BPI P in excess of five percent as calculated by:
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