Contracts and Specifications

Price Adjustment for Bituminous Material and Diesel Fuel

TO ALL CONTRACTORS, SUBCONTRACTORS, MATERIAL SUPPLIERS AND OTHERS INTERESTED IN WORK ON WHICH BIDS ARE SOLICITED BY THE ARIZONA DEPARTMENT OF TRANSPORTATION:

PRICE ADJUSTMENT FOR BITUMINOUS MATERIAL AND DIESEL FUEL

July 24, 2018

When appropriate, the special provisions for certain projects will contain a provision for adjustment of the cost of bituminous material. This will be shown in Section 404 of the special provisions.

The "initial cost" (IC), as the term is used in the special provisions, for bituminous material of all types, grades, etc., on projects on which bids are opened during the month of AUGUST 2018 is $441.00 per ton and this value will also be deemed to be the "current price" (CP) for the month of AUGUST 2018 for projects in construction.

Also, when included in the special provisions, an adjustment to the contractor's monthly progress payment may be made when fluctuations in the price of diesel fuel exceed ±15 percent of the "initial cost." An adjustment, if applicable, will be made as specified in Section 109 of the special provisions.

The "initial cost" (IC), as the term is used in the special provisions, for diesel fuel for projects on which bids are opened during the month of AUGUST 2018 is $2.26 per gallon. This value will also be deemed to be the "current price" (CP) for the month of JULY 2018 for projects in construction.

Copies of the most recent versions of the special provisions for bituminous material price adjustment and diesel fuel price adjustments are available from Contracts and Specifications Section.

Source Data

The monthly price for bituminous material is derived from data published by Poten and Partners Inc. in the Asphalt Weekly Monitor.

The monthly price for diesel fuel is derived from data published by the Oil Price Information Service in the weekly OPIS Newsletter.

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