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Current Design-Build Practices for Transportation Projects

Appendix 3 (New) Maryland SHA Price Adjustment Clause Special Provision

Part 4, Special Provisions ICC Contract B
Section 114 - Price Adjustments Contract No. AT3765B60
1 12-14-07
Conformed 4-23-08

SECTION 114 - PRICE ADJUSTMENTS

114.01 GENERAL

Price Adjustments are included in the Contract to provide additional compensation to the Design-Builder or a credit to the Administration for fluctuations in the cost of the following components ofWork:

  • Diesel fuel used in construction activities for the Project
  • Asphalt cement used in hot mixed asphalt (HMA) for the MD 200 mainline pavements
  • Portland cements used in the MD 200 mainline Portland Cement Concrete Pavements
  • Portland cement use in cast-in-place (CIP) and precast structures
  • Fabricated structural steel for girders, cross frames, diaphragms, splice plates, stiffeners and connection plates.

The Administration has established that the maximum combined total authorized price adjustment for the Project will be $ 10,000,000.00. This amount may be comprised of a combination of the various components based on calculation methods provided in this Special Provision. Price adjustments will be based upon the actual usage of materials for a given payment period, and will be limited to the Administration's established maximum quantity allotment for each Work component for the duration of the Project. No further adjustments will be permitted for a given Work component once the established maximum quantity has been achieved.

The adjustments will be applied to the cost of materials only. No Design-Builder mark-ups or profits will be considered.

114.02 PRICE ADJUSTMENT FOR DIESEL FUEL

To compensate for the fluctuation in the price of diesel fuel used for construction activities that are part of the Contract, the Administration will calculate the quarterly change (higher and lower) in the price of the diesel fuel. Adjustment will be made on the next scheduled payment date after the close of the quarter.

The Administration will calculate the quarterly index price based upon on-highway diesel fuel prices published by the U.S. Department of Energy, Energy Information (US DOE), Central Atlantic Region, found at www.eia.doe.gov . The quarterly index price, termed the Adjusted Base Index (ABI), will be calculated by averaging the weekly on-highway diesel fuel prices for that particular quarter. A Diesel Fuel Adjustment Value will be established only if the ABI exceeds or falls short of the Original Base Index (OBI), provided herein, by more than five (5) percent.

The Original Base Index price shall be established as $3.692 per gallon.

The Administration has established the maximum allotment of diesel fuel for Project construction activities to be 5,500,000 gallons, and will use this quantity exclusively as the basis for the maximum diesel fuel price adjustment for the Contract. The Administration will consider no revisions to the maximum quantity of gallons of diesel fuel.

Price adjustment will be made on the actual quantity usage of diesel fuel for a given payment period.

Computations for Diesel Fuel Adjustment Value shall be as follows:

  1. Where the ABI is greater than the OBI Price Adjustment for Diesel Fuel = Quarterly Gallons x (ABI-5%OBI-OBI)
  2. Where ABI is less than the OBI Price Adjustment for Diesel Fuel = Quarterly Gallons x (ABI+5% OBI-OBI)
114.03 PRICE ADJUSTMENT FOR ASPHALT CEMENT (HMA MD 200 MAINLINE PAVING)

To compensate for the fluctuation of price for portions of the total of liquid asphalt cement used in HMA for MD 200 mainline roadway pavement, the Administration will calculate the quarterly change (higher or lower) in the price of liquid asphalt cement. Adjustment will be made on the next scheduled payment date after the close of the quarter.

The Administration will calculate the quarterly index price (ABI) by averaging the monthly prices of asphalt cement maintained by the Administration of the average F.O.B selling price at the supplier's terminal in Maryland. A Liquid Asphalt Cement Adjustment Value for MD 200 mainline pavement will be established only if the ABI exceeds or falls short of the OBI, provided herein, by more than five (5) percent.

The Original Base Index price established for liquid asphalt cement is $384.30 per ton.

The Administration has established the maximum allotment of liquid asphalt cement for adjustment to be 15,500 tons, and will use this quantity exclusively as the basis for the maximum Liquid Asphalt Cement Adjustment Value for the Project. The Administration will consider no revisions to the maximum quantity of tons for liquid asphalt cement.

Price adjustment will be made on the actual quantity usage for asphalt cement for a given payment period.

Computations for Liquid Asphalt MD 200 mainline Cement Adjustment Value shall be as follows:

  1. Where ABI is greater than the OBI Liquid Asphalt Cement Adjustment Value = Quarterly Tons x (ABI-5% OBI-OBI)
  2. Where ABI is less than OBI Liquid Asphalt Cement Adjustment Value = Quarterly Tons x (ABI+5% OBI-OBI )
114.04 PRICE ADJUSTMENT FOR PORTLAND CEMENT (MD 200 MAINLINE ROADWAY PAVEMENT)

To compensate for the fluctuation in price for Portland cement used in MD 200 mainline roadway pavement, the Administration will calculate the quarterly change (higher or lower) in the price of Portland cement. Adjustment will be made on the next scheduled payment date after the close of the quarter.

The Administration will calculate the quarterly index price (ABI) by averaging the monthly prices of Portland cement published by the Engineering News Record (ENR) for the cities of Baltimore, Maryland, Pittsburgh, Pennsylvania, and Philadelphia, Pennsylvania, found at www.enr.com. A Portland Cement-Pavement Adjustment Value will be established only if the ABI exceeds or falls short of the OBI, provided herein, by more than five (5) percent.

The Original Base Index price established for Portland cement is $101.05 per ton.

The Administration has established the maximum allotment of Portland cement for MD 200 mainline roadway pavement for adjustment to be 40,000 tons, and will use this quantity exclusively as the basis for the maximum Portland Cement -Pavement Adjustments for this Project. The Administration will consider no revisions to the maximum quantity of tons of Portland cement used in MD 200 mainline roadway pavements.

Price adjustment will be made on the actual quantity usage for Portland cement for a given payment period.

Computations for Portland Cement-Pavement Adjustment Value shall be as follows:

  1. Where ABI is greater than the OBI Portland Cement-Pavement Adjustment Value=Quarterly Tons x (ABI-5% OBI-OBI)
  2. Where ABI is less than OBI Portland Cement-Pavement Adjustment Value=Quarterly Tons x (ABI+5% OBI-OBI)
114.05 PRICE ADJUSTMENT FOR PORTLAND CEMENT CAST-IN-PLACE AND PRECAST STRUCTURES

To compensate for the fluctuation of price for portions of Portland cement used for cast-in-place (CIP) footings, substructure and superstructure) and precast structures (retaining walls, noise walls, AASHTO girders), the Administration will calculate the quarterly change (higher or lower) in the price of Portland cement. Adjustment will be made on the next payment date after the close of the quarter.

The Administration will calculate the quarterly index price (ABI) by averaging the monthly prices of Portland cement published by the Engineering News Record (ENR) for the cities of Baltimore, Maryland, Pittsburgh, Pennsylvania and Philadelphia, Pennsylvania, found at www.enr.com . A Portland Cement-Cast in Place and Precast Structure Adjustment Value will be established only if the ABI exceeds or falls short of the OBI, provided herein, by more than five (5) percent.

The Original Base Index price established for Portland cement is $101.05 per ton.

The Administration has established the maximum allotment of Portland cement for adjustment to be 31,000 tons, and will use this quantity exclusively as the basis for the maximum Portland Cement- Cast in Place and Precast Structures Adjustment for the Project. The Administration will consider no revisions to the maximum quantity of tons of Portland cement for cast in place and precast structures. Price adjustment will be made on the actual quantity usage for Portland cement for a given payment period.

Computations for adjustments shall be as follows:

  1. Where ABI is greater than the OBIPortland Cement-CIP and Precast Structures Adjustment Value=Quarterly tons x (ABI-5%OBI-OBI)
  2. Where ABI is less than the OBIPortland Cement-CIP and Precast Structures Adjustment Value=Quarterly tons x (ABI+5%OBI-OBI)
114.06 PRICE ADJUSTMENT FOR STRUCTURAL STEEL

To compensate for the fluctuation in the price for structural steel fabricated girders, cross frames, diaphragms, splice plates, stiffeners and connection plates only, the Administration will calculate the change (higher or lower) in the price of such structural steel components at the time the fabricated materials are approved for delivery to the jobsite. The Administration will verify weights set forth on the fabricators delivery tickets and submitted by the Design-Builder for the Structural Steel Adjustment Value. Adjustment will be made on the next payment date after the close of the quarter.

The Administration will calculate the monthly index price (ABI) by averaging the prices of structural steel published by the Engineering News Record (ENR) for the cities of Baltimore, Maryland, Pittsburgh, Pennsylvania and Philadelphia, Pennsylvania, found at www.enr.com . A Structural Steel Adjustment Value will be established only if the ABI exceeds or falls short of the OBI, provided herein, by more than five (5) percent.

The Original Base Index price established for structural steel is $0.437 per pound. The Administration has established the maximum allotment of delivered structural steel for adjustment to be 22,000,000 pounds, and will use this quantity exclusively as the basis for Structural Steel Adjustment Value for the Project. The Administration will consider no revisions to the maximum quantity of pounds of delivered structural steel.

Price adjustment will be made on the actual quantity usage for delivered structural steel for a given payment period.

Computations for adjustments shall be as follows:

  1. Where ABI is greater than OBI Structural Steel Adjustment Value=Total Pounds delivered x (ABI-5%OBI-OBI)
  2. Where ABI is less than OBI Structural Steel Adjustment Value=Total Pounds delivered x (ABI+5%OBI-OBI)
114.07 PRICE ADJUSTMENT CRITERIA AND CONDITIONS

The Administration will consider the following criteria and conditions to determine price adjustments: Prior to payment of price adjustments, the Design Builder shall obtain and provide to the Administration a sworn affidavit by an officer of the Design-Builder's organization for each request that certifies documents for price adjustment are correct and accurate.

The Design-Builder with each monthly invoice shall submit a report outlining actual usage of materials covered under this Special Provision during the invoice period and the cumulative usage for each material. No price adjustments shall be included with invoices once adjustments have been reached to the specified estimated Work quantities.

The Administration will compute and verify price adjustments on a quarterly basis beginning from the date of first Notice to Proceed or full Notice to Proceed if no first Notice to proceed is issued. The Administration will remit payment on the next scheduled payment date following close of the quarter. Unpaid adjustments remaining from previous periods through Acceptance for Maintenance will be paid at the time of final payment using the Adjusted Base Index in effect at the time of Acceptance for Maintenance.

No price adjustments will be paid for the period liquid damages are assessed.

Maximum quantities established for price adjustments will not be increased if additional Work or Contract Time is added by Change Order or Contract Modification. When preparing cost estimates for additional or changed Work, the Design-Builder shall use the original adjustment costs.

The Design-Builder shall be responsible to notify their subcontractors and suppliers that Price Adjustments are part of the Contract documents. The subcontractors and suppliers shall be afforded the option to participate in the Price Adjustments provisions as part of their subcontract and or purchase agreements with the Design-Builder.

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Updated: 04/04/2011
 

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