6-369 SECTION 690 – COMMODITY PRICE ADJUSTMENTS
690.01 DESCRIPTION . This specification contains price adjustment provisions for commodities used by
the Contractor during construction. These price adjustment provisions will provide for either additional compensation to the Contractor, or a payment to the Agency, based upon chang es in the retail price of a commodity between the time of bidding and the time when the work was performed.
690.02 General Conditions .
a.Decreased Quantities . It shall be understood by the Contractor that a price adjustment increase may cause the Agency to decrease the quantities of the pay items subject to adjustment under these provisions. Provisions providing for decreased quantities and item cancellation in this paragraph are separate and take precedence, notwithstanding any other provisions of the Contract.
b.No Adjustment After Completion Date . No price adjustment will be computed for work performed after the Contract completion date, as modified by change order, if applicable.
c.No Extension of Time . Any increase in the total Contract a mount due to price adjustments will not be justification for an extension of time under Subsection 108.11 .
d.Price Adjustments Based on Estimated Quantities . If estimated quantities are used to determine estimated price adjustments throughout the duration of the Contract, reconciliation of those estimated adjustments will be made upon the determination of actual final quantities. Final adjustments to the total final quantity will be made by prorating those estimated adjustments over the applicable adjustment periods previously paid. Reconciliation of any price adjustments will only be performed in those instances where the actual final quantity differs by more than 5% from the total estimated quantity. Payments owed to either the Contractor or the A gency will not be subject to any applicable interest claims.
e.Pay Items Added by Change Order . Pay items added by change order will be subject to price adjustment provided that all other criteria for that type of price adjustment are met.
f.Index Pri ce. Prior to advertising for bids, an index price per unit of the commodity will be established by the Agency. This price will be specified in the Contract and will be the basis from which commodity price adjustments for pay items included in the original awarded Contract are computed, including pay items where the total quantity is later increased by change order. For pay items added by change order, the index price will be the posted price at the time that the Contractor and the Agency agree to the uni t prices of the pay items to be added. This index price will be specified in the change order and will be the basis from which commodity price adjustments for pay items added in that change order are computed. 6-370 (g) Posted Price . For the duration of the Con tract, the posted price for the commodity will be established monthly by the Agency. The posted price will be established in the same manner as the index price and may be found on the Agency ’s website. The posted price used to calculate the adjustment will be the price for the month in which the work was performed.
690.03 Asphalt Price Adjustment .
a.General Requirements . All asphalt binder and emulsified asphalt incorporated into the work, including that incorporated under Special Specification pay items or pay items added by change order, will be subject to adjustment under this specification.
b.Calculation .
1.Quantity of Asphalt .
a.Asphalt from Asphalt Binder .
1.Bituminous Mixtures Produced at Batch Plants or Foamed Asphalt . The quantity of asphalt from asphalt binder (Q AAB) will be the cumulative amount of virgin asphalt binder for each applicable item as reported on the batch or load ticket.
2.Bituminous Mixtures Produced at Drum -Mix or Continuous Mix Plants . The quantity of asphalt from asphalt binder (Q AAB) will be calculated using the following equation : 𝑄𝐴𝐴𝐵=𝑄𝑀×𝐹𝐴𝐵 where: QAAB = Quantity of asphalt from asphalt binder (tons) QM = Quantity of mix (tons) FAB = Asphalt binder factor The asphalt binder factor will be the percentage of virgin asphalt binder incorporated into the mixture, expressed as a decimal. In the event of multiple asphalt binder contents, the accepted quantity of mix at each asphalt binder content will be determined, and the total quantity of asphalt used will be calculated accordingly. The accumulated asphalt binder total reported by the plant automation may be checked and verified by Agency personnel for each mix. 6-371 b. Asphalt from Emulsified Asphalt . The quantity of asphalt from emulsified asphalt (QAEA) will be calculated using the following equation : 𝑄𝐴𝐸𝐴=0.05×𝑄𝐸𝐴×𝐹𝐴𝐶 where: QAEA = Quantity of asphalt from emulsified asphalt (tons) QEA = Quantity of emulsified asphalt (hundredweight) FAC = Asphalt content factor The quantity of emulsified asphalt will be determined in accordance with the method of measurement for the specification under which it was placed. The asphalt content factor will be the residual asphalt content percentage of the emulsified asphalt, expressed as a decimal and determined as follows :
1.The asphalt content factor will be the minimum residual asphalt content required by the specification under which the emulsified asphalt was placed.
2.If the specification does not require a minimum residual asphalt content, the asphalt cont ent factor will be the minimum residual asphalt content required by Subsection 702.02 for the grade of emulsified asphalt used.
3.If the specification does not require a minimum residual asphalt content and the emulsion type used in the work is not cover ed by Subsection 702.02 , the asphalt content factor will be the average residual asphalt content as determined from Agency test results.
2.Asphalt Price Adjustment Quantity . The quantity of asphalt price adjustment will be calculated using the following equation: 𝑃𝐴𝐴=(𝑄𝐴𝐴𝐵+𝑄𝐴𝐸𝐴)×(𝑃𝑃𝐴−𝐼𝑃𝐴) where: PAA = Price Adjustment, Asphalt (dollars) QAB = Quantity of asphalt from asphalt binder for the month (tons) 6-372 QAEA = Quantity of asphalt from emulsified asphalt for the month (tons) PPA = Posted price of asphalt for the month the work was performed (dollars/ton) IPA = Index price of asphalt cement (dollars/ton)
690.04 Fuel Price Adjustment .
a.General Requirements . For the purposes of this specification, it is assumed that all fuel used by the Contractor is diesel fuel. Fuel price adjustment will only be computed for a pay item if all of the following criteria are met:
1.The pay item is listed in Table 690.04A or is identified as being subject to fuel price adjustment in the Special Provisions or a change order. No other pay items will be subject to adjustment . TABLE 690.04A – ITEMS, FUEL USAGE FACTORS, AND THRESHOLD QUANTITIES Work Category Eligible P ay Item Numbers Fuel Usage Factor (F FU) Threshold Quantity for Work Category Earth Excavation 203.1500, 203.1700, 203.2000, 203.2500, 203.2700, 204.2000, 204.2500, 208.3000 0.319 gal/CY 40,000 CY Aggregates Paid for by the Cubic Yard 203.3500, 204.3000, 301.1500, 301.2500, 301.2600, 301.3500, 401.1000 , 401.1500, 629.0500 0.558 gal/CY 25,000 CY Aggregates Paid for by the Ton 301.2800, 402.1200 , 414.5100, 415.5100, 662.0010 0.413 gal/ton 30,000 tons Bituminous Concrete Pavement 406.0110, 406.0120, 406.0130, 406.0210, 406.0220, 406.0230, 406.0310, 406.0320, 406.0330, 406.0410, 406.0420, 406.0430, 406.1410, 406.1420, 406.1430, 406.2400 2.827 gal/ton 5,000 tons Bonded Wearing Course 407.0100, 407.0200, 407.0300 0.115 gal/SY 115,000 SY Cold Central Plant Recycl ing 415.0200, 415.0250, 415.0300, 415.0350, 415.0400, 415.0450, 415.0500 0.140 gal/SY 95,000 SY 6-373 (2) The total Contract quantity for a given work category , being the total quantity for all eligible pay items in the work category across all projects in the Contract , equals or exceeds the threshold quantity specified in Table 690.04A . For determining which items are subject to fuel price adjustment for a given month, the total Contract quantity will be the quantity, as adjusted by change order, on the last calendar day of the month. Pay items belonging to a work category which ha d a total Contract quantity that was less than the threshold quantity will become subject to fuel price adjustment if additional pay items are added, or the quantities of existing pay items are increased, by change order such that the total quantity for the work category equals or exceeds the threshold quantity. However, only work performed during or after the month in which the change order was processed will be subject to fuel price adjustment. Work that was already performed in prior months will not be subject to retroactive fuel price adjustment. Pay items belonging to a work category which ha d a total Contract quantity that was greater than the threshold quantity will no longer be subject to fuel price adjustment if pay items are removed, or the quantities of existing pay items are decreased, by ch ange order such that the total quantity for the work category no longer equals or exceeds the threshold quantity. However, only work performed during or after the month in which the change order was processed will not be subject to fuel price adjustment. W ork that was already performed in prior months will still be subject to fuel price adjustment.
b.Calculation .
1.Index Price to Posted Price Ratio . The ratio of the posted price to the index price will be calculated using the following equation: 𝑅=𝑃𝑃𝐹 𝐼𝑃𝐹 where: R = Ratio of the posted price to the index price PPF = Posted price of diesel fuel for the month the work was performed (dollars/gallon) IPF = Index price of diesel fuel (dollars/gallon) 6-374 (2) Fuel Price Adjustment Quantity . The quantity of fuel price adjustment will be computed using the appropriate equation below. If multiple items are eligible for fuel price adjustment, the fuel price adjustment for each individual item will be calculated and the resulting values summed to gene rate one fuel price adjustment for the month. For R < 0.95 𝑃𝐴𝐹=𝐹𝐹𝑈×𝑄×[𝑃𝑃𝐹−(0.95×𝐼𝑃𝐹)] For 0.95 ≤ R ≤ 1.05 𝑃𝐴𝐹=0 For R > 1.05 𝑃𝐴𝐹=𝐹𝐹𝑈×𝑄×[𝑃𝑃𝐹−(1.05×𝐼𝑃𝐹)] where: R = Ratio of the posted price to the index price PAF = Price Adjustment, Fuel (dollars) FFU = Fuel usage factor (gallons/unit) Q = Quantity of the item placed in the month (varying units) PPF = Posted price of diesel fuel for the month the work was performed (dollars/gallon) IPF = Index price of diesel fuel (dollars/gallon)
690.05 METHOD OF MEASUREMENT . The quantity of Price Adjustment, Asphalt (N.A.B.I.) will be
the number of dollars calculated in accordance with Subsection 690.03 . The quantity of Price Adjustment, Fuel (N.A.B.I.) will be the number of dollars calculated in accordance with Subsection 690.04 . 6-375 690.06 BASIS OF PAYMENT . Payment for Price Adjustment, Asphalt (N.A.B.I.) will be debited or credited against the Contract dollar price for Price Adjustment, Asphalt (N.A.B.I.). Payment for Price Adjustment, Fuel (N.A.B.I.) will be debited or credited against the Contract dollar price for Price Adjustment, Fuel (N.A.B.I.). Payment will be made under: Pay Item Pay Unit 690.0300 Price Adjustment, Asphalt (N.A.B.I.) ................................ ....................... Dollar 690.0400 Price Adjustment, Fuel (N.A.B.I.) ................................ ............................ Dollar 6-376 SECTION 698 – ID/IQ AND JOC PAY ITEMS
698.01 DESCRIPTION . This work shall be as specified in the Contract. This section is a placeholder for
ID/IQ and JOC pay items.
698.02 METHOD OF MEASUREMENT . The quantity of Lump Sum Project, ID/IQ to be measured for
payment will be on a lump sum basis for the complete and accepted work. The quantity of Lump Sum Project, JOC to be measured for payment will be on a lump sum basis for the complete and accepted work.
698.03 BASIS OF PAYMENT . The accepted quantity of Lump Sum Project, ID/IQ will be paid for at
the Contract lump sum price. Payment will be full compensation for furnishing all labor, materials, tools, equipment, and incidentals necessary to complete the work. The accepted quantity of Lump Sum Project, JOC will be paid for at the Contract lump sum price. Payment will be full compensation for furnishing all labor, materials, tools, equipment, and incidentals necessary to complete the work . Payment will be made under: Pay Item Pay Unit 698.1000 Lump Sum Project, ID/IQ ................................ ................................ ......... Lump Sum 698.2000 Lump Sum Project, JOC ................................ ................................ ........... Lump Sum
Source: Vermont Standard Specifications for Construction, 2024 Edition. Pages 1143–1149 of 1,380.