(Last Revised September, 2021)
698-1DESCRIPTION. This section will provide for additional compensation to the Contractor for
increases, or repayment by the Contractor for decreases, in the price of asphalt, fuel, or steel/iron products.
698-1.01Asphalt Price Adjustment. This item will enable the Department to make price adjustments to
account for changes in asphalt prices. Price adjustments will be made for eligible work listed in the contract proposal.
698-1.02Fuel Price Adjustment. This item will enable the Department to make price adjustments to
account for changes in fuel prices. Price adjustments will be made for eligible work listed in the contract proposal.
698-1.03Steel/Iron Price Adjustment. This item will enable the Department to make price adjustments
to account for changes in steel/iron product prices for materials eligible and identified by the Contractor which will be permanently incorporated into the work.
698-2MATERIALS. None specified
698-3CONSTRUCTION DETAILS. No adjustment will be provided for any new or additional work
paid for by force account. Additional quantities of existing contract pay items at original bid prices will be considered eligible work. Additional work added by agreed price will be considered eligible work. Work performed by the Contractor at its own expense will not be eligible for price adjustment. 698-3.01 382 Section 600 STANDARD SPECIFICATIONS (USC) January 1, 2026 VOLUME 3 The monthly average asphalt prices, monthly average fuel prices, steel cost basis and steel index values will be posted in the Engineering Bulletin entitled Fuel, Asphalt and Steel Price Adjustments. If eligible items are installed after the contract completion date, when an extension of time without the assessment of engineering charges and/or liquidated damages is approved, the monthly average posted price or monthly steel index value will be used to compute price adjustments. If eligible items are installed after the contract completion date, when an extension of time was approved with the assessment of engineering charges and/or liquidated damages, the monthly average posted price or monthly steel index in effect on the last contract completion date without the assessment of engineering charges and/or liquidated damages, or the value for the month of installation/purchase, whichever is less, will be used to compute price adjustments.
698-3.01Asphalt Price Adjustment. The asphalt price adjustment will be based solely on the price
changes for asphalt as determined by the formulas below. No adjustment will be made if the monthly average posted price is within $15.00 of the asphalt index price. No consideration will be given to the situation where an individual supplier's price exceeds the monthly average posted price.
price for original contract bid price items and additional work at the original contract bid price will be the monthly average posted price for the month of the bid letting. The asphalt index price for additional work at agreed price will be the monthly average posted price for the month the agreed price was submitted to the Engineer.
binder, without anti-stripping agent, determined by the Department, based on prices of approved primary sources of PGB.
multiplying the quantity of eligible work completed by the conversion factors listed in the Special Note entitled Asphalt Price Adjustment.
Price - PGB Index Price - $15.00)
Price - PGB Index Price + $15.00)
698-3.02Fuel Price Adjustment. The fuel price adjustment will be based solely on the price changes for
fuel as determined by the formulas below. No adjustment will be made if the monthly average posted price is within $0.10 per gallon of the fuel index price. No consideration will be given to the situation where an individual supplier's price exceeds the monthly average posted price,
price adjustments. The fuel index price for original contract bid price items and additional work at 698-3.03 383 Section 600 STANDARD SPECIFICATIONS (USC) January 1, 2026 VOLUME 3 the original contract bid price will be the monthly average posted price for the month of the bid letting. The fuel index price for additional work at agreed price will be the monthly average posted price for the month the agreed price was submitted to the Engineer.
low sulfur diesel (ULSD) and gasoline.
multiplying the quantity of eligible work completed by the fuel usage factor listed in the Special Note entitled Fuel Price Adjustment.
Price - Fuel Index Price - $0.10)
Price - Fuel Index Price + $0.10)
698-3.03Steel/Iron Price Adjustment. Within 30 calendar days after award, the Contractor shall
provide the Engineer with a list of materials to which the Contractor opts to apply the steel price adjustment, identifying the materials by groups of similar material content within a core (3 digit) contract pay item (e.g. 564 Structural Steel or 603.05xxxx Corrugated Steel Pipe). For each material listed, the Contractor shall also identify the parties whose relationship establishes the invoice date. If the two parties are known, they shall be identified by name. If the two parties are not known, they shall be identified by role (Contractor, Subcontractor, Material Supplier, Fabricator, Manufacturer, Mill, etc.). Different parties may be identified for individual or groups of contract pay items for the purposes of establishing an invoice date. If the Contractor does not provide a list of materials to which to apply the steel price adjustment, no steel price adjustment will be made. If the percentage change for a given month does not exceed 5% plus or minus, from the benchmark steel index, no adjustments will be made for materials invoiced that month. For lump sum or each items that are assembled from numerous components, such as overhead sign structures, the percentage change will be determined for the assembled contract pay item using the month that the largest value of materials were invoiced. For unit price items such as guiderail that are assembled from numerous components, the percentage change will be determined for a given quantity of the contract pay item using the month that the largest value of component materials for that quantity of the contract pay item were invoiced. The weight of the steel and/or iron shall exclude minor appurtenances individually weighing less than 5 lbs (i.e., nuts, bolts, washers, etc.). Precast or prestressed concrete items shall have total reinforcing steel weight listed on the approved shop drawings. The following sources shall be used, in declining order of precedence, to determine the weight of steel/iron: Department established weights of steel/iron by contract pay item per pay unit; approved shop drawings; verified shipping documents; contract documents; Standard Sheets; industry standards (i.e., AISC Manual of Steel Construction, AWWA Standards, etc.); and manufacturer’s data.
Steel Mill Products (WPU 101702). PPI values are published by the US Department of Labor, Bureau of Labor Statistics (BLS). Recent PPI values are posted on the Office of Construction website at www.dot.ny.gov. A complete listing of PPI values can be found on the BLS website at http://data.bls.gov/PDQ/outside.jsp?survey=wp. The Cost Basis, Benchmark Steel Index, Monthly Steel Index, and the Percentage Change are defined as follows: 698-3.03 384 Section 600 STANDARD SPECIFICATIONS (USC) January 1, 2026 VOLUME 3
basis from which to compute steel/iron price adjustments. The cost basis for original contract bid price items and additional work at the original contract bid price will be the cost basis listed for the month of the bid letting. The cost basis for additional work at agreed price will be the value of the cost basis for the month the agreed price was submitted to the Engineer.
and additional work at the original contract bid price will be the value of the preliminary PPI for the month of the bid letting. The benchmark steel index for additional work at agreed price will be the value of the preliminary PPI for the month the agreed price was submitted to the Engineer.
final PPI is not posted for a given month, the value will be the preliminary PPI for the month the material is invoiced. If a preliminary PPI is not posted for a given month, the value will be the average of the two preceding months that are posted.
100xBI BIMIChangePercentage
−=
number (e.g., 564 – Structural Steel) will be measured to the nearest 0.1 Tons.
benchmark steel index, Price Adjustments will be made for materials invoiced that month. The Contractor shall provide the Engineer a detailed list of the weight of eligible materials within 60 calendar days after installation, including: the contract pay item, the weight of steel/iron, the month(s) of invoice, the source used to determine the weight, and if requested by the Engineer, copies of invoices to verify the month of invoice.
from the benchmark steel index, no adjustments will be made for materials invoiced that month.
benchmark steel index, a Price Adjustment will be charged to the Contractor for materials invoiced that month. The Contractor shall provide the Engineer a detailed list of the weight of eligible materials within 60 calendar days after installation, including: the contract pay item, the weight of steel/iron, the month(s) of invoice, the source used to determine the weight, and copies of invoices to verify the month of invoice.
to apply the steel price adjustment, based on the following formulas:
Price Adjustment ( ) QtyCBBI BIMI − −= 05.0
698-4.01 385 Section 600 STANDARD SPECIFICATIONS (USC) January 1, 2026 VOLUME 3 Price Adjustment ( ) QtyCBBI BIMI + −−= 05.0
698-4METHOD OF MEASUREMENT
698-4.01Asphalt Price Adjustment. Asphalt price adjustments will be measured on a Dollar Cents
basis.
698-4.02Fuel Price Adjustment. Fuel price adjustments will be measured on a Dollar Cents basis
698-4.03Steel/Iron Price Adjustment. Steel/Iron price adjustments will be measured on a Dollar Cents
basis.
698-5BASIS OF PAYMENT. The unit price shown in the itemized proposal will be considered the unit
price bid, although actual payment will be calculated based on changes in posted material prices. Should the amount shown be altered, the altered figures will be disregarded and the original price will be used to determine the total contract bid amount. If price adjustments are based on estimated material quantities, and a revision to the estimated material quantity is made in a subsequent or final estimate, an appropriate addition or deduction will be made to the price adjustment previously calculated. The addition or deduction will be based on the adjustment factors initially used to calculate the price adjustment. If the installation dates of the revised material quantity cannot be determined, the addition or deduction will be based on the adjustment factors in effect during the last month in which any portion of the material quantity was installed.
698-5.01Asphalt Price Adjustment. The asphalt price adjustment will be based on the monthly
average posted price in effect at the time the work is completed, calculated using the price adjustment formula described above.
698-5.02Fuel Price Adjustment. The fuel price adjustment will be based on the monthly average
posted price in effect at the time the work is completed, calculated using the price adjustment formula described above.
698-5.03Steel/Iron Price Adjustment. The steel/iron price adjustment will be based on the monthly
steel index in effect at the time of invoice between the two parties previously identified by the Contractor, calculated using the price adjustment formula described above. Payment will be made under: Item No. Item Pay Unit
698.04Asphalt Price Adjustment Dollars Cents
698.05Fuel Price Adjustment Dollars Cents
698.06Steel/Iron Price Adjustment Dollars Cents
Price Adjustments in other states
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