Fuel_Price_Adjustment_Clause.pdf
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- Solicitation number
- RFP #27008
- Issued by
- Greenville County, South Carolina
About this file
This is a Fuel Price Adjustment Clause document from the Greenville County, South Carolina government, based on provisions established by the South Carolina Department of Transportation (SCDOT). The clause applies to the Unit 4 Cell 5 Liner Construction project at Twin Chimneys Landfill, an 8.6-acre base liner construction involving clay, geosynthetic clay liner (GCL), 60-mil high-density polyethylene (HDPE), geocomposite, protective cover, and leachate collection pipes. The contractor is responsible for construction quality control and surveying, with substantial completion required within 180 calendar days from Notice to Proceed and final completion within 210 calendar days. Liquidated damages are assessed at $1,000 per day for failure to achieve substantial completion and $500 per day for failure to achieve final completion.
The fuel price adjustment provision applies to four specific work items: subgrade preparation, compacted soil liner, leachate column stone, and operational cover. Adjustments are calculated based on the average fuel prices (diesel and unleaded) published monthly by SCDOT for Zone 1 and Zone 2. The base index price is established using the average fuel price for the month in which the project is bid, while the current index price reflects the average fuel price for the month work is performed. Price adjustments are triggered only when the ratio of current to base index price exceeds 1.10 for upward adjustments or falls below 0.90 for downward credits. Adjustments cease for work performed after the contract completion date. Contractors must submit a Fuel Usage Factor election form specifying gallons per unit of work to be eligible for any adjustment.
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Fuel Price Adjustment Provision
This Fuel Price Adjustment Provision is based on the South Carolina Department of
Transportation (SCDOT).
1. General
This provision provides for a price adjustment for fuel costs (Diesel and/or Unleaded) used in the performance of specific work items. This adjustment will only be made when the index price for the fuel has increased or decreased more than ten percent (10%) from the
Base Index Price.
Greenville County will calculate and apply fuel adjustments to Progress Payment Estimates based on index values set at the beginning of the Progress Payment Estimate period. The
Progress Payment Estimate period begins on the 1st of the month and ends on the last day of the month. The 1st of the month Index will be compared to the contract Base Index to determine index adjustments for the Progress Payment Estimate period.
2. Base and Current Index
• Base Index Price (B): The average fuel price as determined by the SCDOT for the month in which the project is bid.
• Current Index Price (A): The average fuel price as determined by the SCDOT for the month in which the work was performed.
• Note: Index prices are published monthly on the SCDOT website for Zone 1 and
Zone 2.
3. Trigger for Adjustment
An adjustment will only be made if the ratio A/B is greater than 1.10 (upward adjustment) or less than 0.90 (downward credit to Greenville County).
4. Calculation Formula
The Fuel Price Adjustment (FPA) for an applicable work item shall be calculated as follows:
FPA = (A - 1.10B) × Q × UF (for price increases)
FPA = (A - 0.90B) × Q × UF (for price decreases)
Where:
• A = Current Index Price
• B = Base Index Price
• Q = Quantity of work performed during the estimate period
• UF = Fuel Usage Factor (gallons per unit of work, e.g., 0.25 gal/CY for unclassified excavation)
The Base Index, Current Index and Adjustments may be referenced directly on the SCDOT
Index spreadsheet at https://www.scdot.org/business/constructionletting-monthlyindex.html
5. Limitations
• Expiration of Time: If the Contractor fails to complete the work within the contract time, no upward price adjustment will be made for work performed after the contract completion date using indexes higher than those in e;ect on the last day of the contract.
• Documentation: No adjustment will be made for any fuel where the Contractor has not submitted a "Fuel Usage Factor" election form.
6. Payment
Adjustments will be paid or deducted for the following items in Section 00 42 13.
Item # Description
4 Subgrade Preparation
5 Compacted Soil Liner
10 Leachate Column Stone
12 Operational Cover
File details come from the government source that posted it. Updated .