46-Sec 01 26 73 - BITUMINOUS MATERIAL PRICE ADJUSTMENT.pdf

BITUMINOUS MATERIAL PRICE ADJUSTMENT

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SECTION 01 26 73

PART 1 GENERAL

1.01 DESCRIPTION OF WORK

A. These requirements provide for a price adjustment, in the form of a payment to Contractor or a rebate to Owner, for fluctuations in the cost of asphalt cement used in the bituminous materials placed as part of the construction work specified in PennDOT Publication 408, Section 110.04. Applicable contract items include any bituminous materials specified in Section 110.04 of Publication 408.

B. These price adjustment provisions apply only to projects where more than 100 tons of asphalt cement, including asphalt cement residue contained in emulsions or cut backs, will be used in the bituminous materials specified or indicated for placement. The Pennsylvania Department of Transportation posts monthly index prices for asphalt cement (PG 64S-22) using price data obtained, on the last Wednesday of the preceding month, from a survey of producers who do business in Pennsylvania. Data provided by producers serving the eastern portion of the state is averaged to compute the index price for Zone 1 (Districts 3-0, 4-0, 5-0, 6-0, and 8-0).

PART 2 - PRODUCTS

Not Used

PART 3 - EXECUTION

3.01 PRICE ADJUSTMENT CRITERIA AND CONDITIONS

A. No Price Adjustment

1. When the ratio IP/IB falls within the range of 0.90 to 1.10, no price adjustment will be made for any bituminous material placed during the relevant month.

B. Price Rebate

1. When the ratio IP/IB is calculated to be less than 0.90, Owner will receive an automatic price rebate determined according to the following formula:

P.R. = (0.90 – IP/IB) (Q) (IB) where:

P.R. = Price Rebate IP = Price Index for the last Wednesday of the month preceding the month in which the material is placed (One-Month Price Adjustment Period) IB = Price Index in the Proposal Q = Quantity tons of Bitumen in Mixture placed

C. Price Increase

1. When the ratio IP/IB is calculated to be greater than 1.10, Contractor will receive a price increase determined according to the following formula:

P.I. = (IP/IB – 1.10) (Q) (IB) where:

P.I. = Price Increase IP = Price Index for the last Wednesday of the month preceding the month in which the material is placed (One-Month Price Adjustment Period) IB = Price Index in the Proposal Q = Quantity tons of Bitumen in Mixture placed

D. Equivalent Tonnage.

1. Square Yard Basis. For bituminous mixtures placed on a square yard basis, the equivalent tonnage is computed as follows:

Bituminous Mixture Tonnage Placed = (0.000375) (A) (D) (d) where:

A = Surface Area (square yards) D = Design Depth (inches) d = Design Density* (pounds per cubic feet)

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• The Design Density will be obtained from the approved JMF (Form TR-448A, Job Mix Formula Report) for the bituminous mixture placed. The Design Density will be the “Lab Density” listed on the applicable JMF. The Design Density (i.e. Lab Density) obtained from Form TR-448A will be converted to the proper units by multiplying by the density of water,

62.4 pounds per cubic foot.

• ** The Percent Bitumen will be obtained from the approved JMF (Form TR-448A, Job Mix Formula Report) for the bituminous mixture placed. The Percent Bitumen will be the “Virgin AC%” listed on the applicable JMF.

2. Gallons per Square Yard Basis. For bituminous material placed on a gallons per square yard basis according to specification, and residue content according to Bulletin 25, the equivalent tonnage is computed as follows:

Bitumen Tonnage = (0.004164) (A) (a) (g) where:

A = Surface Area (square yards) a = Actual Residue Application Rate (gallons per square yard) g = Specific Gravity of Bituminous Material

3. Gallon Basis. For bituminous material placed on a gallon basis, the equivalent tonnage is computed as follows:

Bitumen Tonnage = (0.004164) (g) (p) (No. of gallons) where:

g = Specific Gravity of Bituminous Material p = % Asphalt in Emulsion

E. Expiration of Contract Time.

1. If bituminous materials or mixtures are placed after expiration of contract time and liquidated damages are chargeable, the value for IP used to compute the price adjustment will be either the price index at the time of actual placement or the price index at the time contract time expired, whichever is less.

F. Approval.

1. Should the price index at time of placement, IP, indicate an increase of 50% or more over the price index in the proposal, IB, do not furnish bituminous material for the project without prior written approval.

G. Payment/Rebate.

1. The price adjustment will be paid, or rebated, upon approval of a work order to be prepared after completion of all work. Cumulative price adjustments amounting to less than $500 will be disregarded. Upon written request by Contractor, partial payments may be made, before total completion, when the unpaid accrued price increase exceeds $10,000 or once every 12 months.

H. Inspection of Records.

1. Owner reserves the right to inspect the records of Contractor and its subcontractors and material suppliers to ascertain actual pricing and cost information for the asphalt cement used in the bituminous materials incorporated in the work.

I. Extra Work.

1. If applicable items of work, as specified herein, are added to the contract as extra work, no price adjustment will be made for fluctuations in the cost of asphalt cement used in any bituminous materials placed in the performance of the extra work, unless otherwise approved.

END OF SECTION