09r0006 index rioc.doc

Annual Cost Adjustments Annual cost adjustments to the base year award amount (excluding line items in Section III of the Bid Schedule) will be increased or decreased based upon the Construction Cost Index as published by the Engineering News Record for the anniversary month of base year award.

For example, the contract was awarded in December 2007. Option year 1 would be awarded in December 2008. Review of the ENR reveals that The Construction Costs has increased 5.7%. Therefore, the unit pricing would be adjusted increased by 5.7% Items to be adjusted by Contract Asphalt Index

For each delivery order issued the line items in Section III of the bid schedule will be increased or decreased based upon the NYDOT monthly Engineering Bulletin entitled Fuel, Asphalt & Steel Price Adjustments. The formula to be used will be:

Price Increase:

Price Adjustment = (Quantity of line item) X (Average Posted Price for Asphalt – Contract Award Price for asphalt - $10.00) Price Decrease:

Price Adjustment = (Quantity of line item) X (Average Posted Price for Asphalt – Contract Award Price for asphalt + $10.00) For Example, the contract was awarded in January 2009. A delivery order is being issued in February 2009 for 3 tons of asphalt. Per the Engineering Bulletin the price has dropped therefore the formula for Price Decrease is used:

Price Adjustment = (3 Tons) X ($426-$460+$10)

Price Adjustment = 3 X (-$24)

Price Adjustment = -$72