Asphalt Adjustment 2022.xlsx

This is a pricing adjustment schedule for Liquid Asphalt Master Agreements administered by the Kentucky Transportation Cabinet, effective March 1, 2022. The document outlines the mechanism for monthly adjustments to liquid asphalt pricing based on the KAPI (Kentucky Asphalt Pavement Association) index. The schedule provides a template for tracking delivery orders throughout the calendar year, with entries for the month placed, gallons of material picked up or delivered, the baseline KAPI price at contract let (PL), the current month's KAPI price (PC), threshold verification, and the resulting adjustment percentage. The adjustment calculation applies a standard factor of 0.6 and divides by 240 to determine the final quantity adjustment amount based on the difference between current and baseline KAPI values.

The pricing adjustment formula accounts for fluctuations in asphalt material costs by comparing the KAPI values between the contract award month and the month of adjustment. Contractors and government entities can access current KAPI pricing through the Kentucky Transportation Cabinet's official website. The document functions as an administrative tool to ensure fair compensation adjustments for suppliers when material costs vary significantly from contract inception, with adjustments applied uniformly across all monthly deliveries under the master agreement framework.