SP109-000100-05.docx

GUIDELINES — For all projects containing eligible asphalt materials on the master list located on the Construction Division web site.

SP109-000100-05

VIRGINIA DEPARTMENT OF TRANSPORTATION

SPECIAL PROVISION FOR

ASPHALT MATERIAL PRICE ADJUSTMENT

July 8, 2024

All asphalt material contained in the master listing on the Construction Division website of eligible bid items and designated as pay items in the Contract or added as pay items by Change Order will be price adjusted according to the provisions as set forth herein. Other items will not be price adjusted, except as otherwise specified in the Contract.

Each month, the Department will publish an average statewide price per ton for PG 64S-22 f.o.b., and an average statewide price per ton for PG 64E-22 f.o.b., developed from the average terminal prices provided to the Department from suppliers of asphalt cement to contractors doing work in Virginia. The Department will collect terminal prices from approximately 12 terminals each month. These prices will be received once each month from suppliers on or about the last weekday of the month. The high and low prices will be eliminated, and the remaining values averaged to establish the average statewide prices for the following month.

The monthly average statewide prices will be posted on the Construction Division website on or about the first weekday of the month. The posted monthly average statewide prices will be the (a) Base Index for all contracts on which bids are received during the calendar month of the Department’s posting on the Construction Division website, and (b) Current Index for all eligible asphalt materials placed during the calendar month of the Department’s posting under an executed contract.

The amount of adjustment applied will be based on the difference between the Contract’s Base Index and the Current Index for the calendar month during which the work is performed. The quantity of asphalt cement for asphalt concrete pavement to which adjustment will be applied will be the quantity based on the percent of asphalt cement shown on the appropriate approved job mix formula.

The Base Index for application of Asphalt Adjustments will be determined in accordance with the following:

(a) When the actual quantities of asphalt material pay item(s) change, alter, or vary from the estimated quantities with no adjustment to the Contract bid price of those pay items, then the Base Index shall be the monthly average statewide prices posted at the time of the letting.

(b) When the Department issues a Change Order that changes or alters the quantity of asphalt material pay item(s) with a commensurate adjustment to the Contract price(s) for the pay item(s), then the Base Index for the altered quantity and altered price(s) shall be the monthly average statewide price(s) posted for the calendar month in which the altered quantity and altered price are established in the Contract (the Change Order approval date).

(c) When the Department issues a Change Order to add new asphalt material pay item(s) eligible for price adjustment to a Contract, the Base Index for the added pay item(s) shall be the monthly average statewide price(s) posted for the calendar month the pay item(s) is (are) established in the Contract (the Change Order approval date).

In the event the monthly average statewide prices were to change by 10 percent or more of the Base Index during the middle of the month, the Contractor can submit a letter to the Department and supplier that provides evidence of the difference in price. Upon receipt of the letter, consideration will be given to extend additional adjustments as deemed necessary. In the event either Index changes radically from the apparent trend, as determined by the Engineer, the Department may establish an Index which it determines to best reflect the trend.

Adjustment of any asphalt material other than PG 64S-22 and PG 64E-22 will be based on the Indexes for PG 64S-22.

The quantity of asphalt emulsions to which adjustment will be applied will be the quantity based on 65 percent residual asphalt.

Price adjustment will be shown as a separate entry on the monthly progress estimate; however, such adjustment will not be included in the total cost of the work for progress determination or for extension of Contract time. Price adjustment will be calculated using the same units as the corresponding pay items in the Contract.

Any apparent attempt to unbalance bids in favor of items subject to price adjustment or failure to submit required cost and price data as noted hereinbefore may result in rejection of the bid proposal.