facilities, tool trailers, office equipment rental, temporary toilets, incidental supplies, and utility expenses. Payment will be made only for the actual costs incurred during the delay period as documented on paid invoices. 880
5.Escalation Costs Payment for escalation costs due to an excusable, compensable delay will be limited to the escalated cost of labor, materials, and equipment on that portion of the work which is delayed beyond an original intermediate completion date or the contract completion date and is caused to be performed during a period when the costs were higher than when the work was planned to be performed as shown on the accepted schedule prior to the delay. The Contractor shall submit satisfactory documentation of escalation costs in a format approved by the Department.
a.Labor Escalation Payment for escalated labor costs will be calculated as the difference in labor cost between the time the work was performed and the time the work was planned. Labor costs will be calculated in accordance with 109.05(b)1 except that no markup will be paid for labor escalation.
b.Materials Escalation or Storage Payment for escalated material costs will be calculated as the difference in the material cost between the time the work was performed and the time the work was planned. No material escalation cost will be paid for any item covered by a separate 900 escalation or indexing clause under the contract. The Department will pay for storage of materials, as approved by the Engineer, due to the delay. Only the actual cost of storing the materials will be paid. No markup will be paid for materials storage.
c.Equipment Escalation Payment for equipment escalation costs will be calculated as the difference between the Rental Rate Blue Book FHWA hourly rate at the time the work was performed and the Rental Rate Blue Book FHWA hourly rate at the time the work was 910 planned. No markup will be paid for equipment escalation costs.
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109.05.3 PG Asphalt Binder Material Cost Adjustments The Contractor shall elect at the time the bid proposal is submitted, in a manner determined by the Department, whether or not to enact PG asphalt binder material cost
adjustments. If the Contractor elects not to enact such adjustments, there will be no adjusted payment made to the Contractor for changes in the cost of PG asphalt binder materials used on the project and the provisions of this specification will not be applied 920 to the contract. PG asphalt binder material cost adjustments will not be added to the 109.05.3 122 contract at any time after the Contractor has elected not to enact such adjustments with submittal of the bid proposal. PG asphalt binder material cost adjustments will not be applied to alternate bid pavement items, but may be applied to the common items on contracts containing alte rnate bid pavement items. When the Contractor elects to enact PG asphalt binder material cost adjustments at the time the bid proposal is submitted, the Department will adjust payment to the Contractor due to an increase or decrease in the cost of PG asphalt binder material used on the project to produce HMA mixtures that are paid in accordance with 304, 930 401, 402, 410, 414, 610, or 718. Payment will be adjusted when an increase or decrease in the PG asphalt binder index for the contract is greater than or equal to 10.01%. Payment will only be adjusted when the total original or revised quantity of at least one HMA pay item exceeds 2,000 tons. For contracts without any original HMA pay item quantity equal to or greater than 2,000 tons, adjusted payment will not be made until the revised quantity of at least one HMA pay item meets the quantity criteria. The initial 2,000 tons of HMA will not be eligible for a payment adjustment. 940 The Department will determine a PG asphalt binder index from one or more commercial services that provide regional indices. The PG asphalt binder index will be maintained by the Department’s Division of Materials and Tests and posted on the Department’s website. The posting will include an explanation of how the index is determined. A monthly payment adjustment will be calculated for each HMA pay item placed on the contract duri ng that month. The total PG asphalt binder adjustment applied to the contract each month will be the sum of the calculations for each HMA pay item. The payment adjustment for each HMA pay item will be calculated as follows: 950 For a price increase: MPA = (Q x Pb)/100 x LI x [(BI-LI)/LI - 0.10] For a price decrease: MPA = (Q x Pb)/100 x LI x [(BI-LI)/LI + 0.10] where: 960 MPA = Mixture Payment Adjustme nt, in dollars, calculated to the nearest 0.01 dollar for each HMA pay item. Q = Quantity of a HMA pay item placed, in tons, entered to the actual 0.01 unit placed. The quantity will be calculated prior to calculation of any other quantity adjustment. 109.05.3 Pb = Percent of virgin asphalt binder from the DMF, in the adjustment period, or JMF for the HMA mixture, entered to 970 the nearest 0.1. BI = PG asphalt binder index for the month the HMA pay item is placed, reported to the nearest whole dollar. LI = PG asphalt binder index for the contract. The LI for all original contract HMA pay items equals the BI for the month immediately prior to the month of letting for the contract. The LI for any HMA extra work pay item will be the BI for the month the unit price for the pay item is submitted by the 980 Contractor. The calculation of (BI-LI)/LI will be rounded to the nearest 0.001. Payment will only be adjusted when the absolute value of (BI-LI)/LI is equal to or greater than 0.101. If HMA pay items are placed beyond th e specified contract completion date for the contract, the Department will calculate pay adjustments on the BI for the month of the specified completion date or the month of placement, whichever result is less. The unit price of PG asphalt binder payment adjustment will be $1.00 and the pay 990 quantities will be in units of dollars. Payment will be made under: Pay Item Pay Unit Symbol Payment Adjustment, PG Asphalt Binder ......................... DOL
109.06 Eliminated Pay Items
If pay items contained in the Schedule of Pay Items are found unnecessary for the 1000 proper completion of the work, they may be eliminated from the contract as a change order. Such action shall not invalidate the contract. When notified of the elimination of pay items, the Contractor will be reimbursed for actual work done and all costs incurred, including mobilization of materials prior to said notification. This material may, at the option of the Department, be purch ased at the actual cost including freight to the Contractor, plus 12%. 109.07 Partial Payments The contract may contain more than one project. Partial payments may be made once each month as the work progresses or tw ice each month if it is determined that 1010 the amount of work performed is sufficient to warrant such payment. These payments will be based on estimates, prepared by the Engineer, of the value of the work performed and materials complete in place in accordance with the contract. No partial 109.07 124 payment will be made or estimates submitted when the total value of the work performed since the last estimate amounts to less than $500. Except as set out in 105 IAC 11-3-8 of the Rules for Prequalification of Contractors and Bidding, the balance, less all previous payments and less amounts claimed which are required to be held by th e Department in accordance with IC 8-23- 9-26 through 8-23-9-39, will be certified for payment. 1020 Within 10 business days of receipt of payment for any such estimate, the Contractor shall make payment to all subcontractors, including lessors and material suppliers, for the value of their work perf ormed and materials complete in place in accordance with the contract. Failure to comply with this clause shall constitute a material breach of the contract and may result in sanctions under the contract. Any delay or postponement of paymen t among the parties may take place only for good cause, with the Department’s written approval. The explanation from the Contractor shall be made in writing to the Department. 1030 Upon receipt of a claim under IC 8-23-9-26, the Department will retain out of the amount due the Contractor the amount of the claim. The amount to be retained will be withheld from partial payment estimates until the total amount of the claim has been retained. In order to retain an amount when required by IC 8-23-9-26, the Engineer will apply a negative quantity to the contract liens pay item for the actual dollar amount of the claim. Upon resolution of the claim, the Engineer will post a positive quantity to the contract liens pay item equal to the am ount originally retain ed. The final quantity 1040 of the contract liens pay item will be zero prior to final payment. The contract unit price for contract liens will be $1.00. Payment will be made under: Pay Item Pay Unit Symbol Contract Liens ................................................................... DOL No allowance will be made for materials received which have not been incorporated into th e work except in accordance with 111.
109.08 Final Payment When the work has been completed in acco rdance with the terms of the contract,
a final estimate will be prepared for the work done and a copy will be furnished to the Contractor. Final payment will not be made to the Contractor until allowed by IC 8-23-9-26 through IC 8-23-9-39. 109.08 125 All prior partial estimates and payments will be subject to correction in the final 1060 estimate and payment. Except as otherwise provided herein, fina l payment will be made within 180 days after acceptance of the project. Acceptance shall be considered as the date the Contractor is relieved of further maintenance as provided in 107.19 and as set out in the final acceptance letter. However, final payment shall not be made on an amount which is in dispute or the subject of a pending claim. However, final payment may be made on that portion of the contract or those amounts which are not in dispute or subject of a pending claim. Such partial payment shall not constitute a bar, admission, estoppel, or have any other effect as to those payments in dispute or the subject of a 1070 pending claim. For the purpose of this section, a dispute exists when the Contractor makes a claim for increase or decrease to any part of the contract or seeks additional compensation for any reason.
Source: Indiana Standard Specifications, 2024 Edition. Pages 136–141 of 1,248.