December 2011
NORTH CAROLINA DEPARTMENT OF TRANSPORTATION
PRICE ADJUSTMENT PROCEDURES FOR
ASPHALT BINDER FOR PLANT MIX
Article 620-4 of the 2012 Standard Specifications states that adjustments will be made to
payments due the Contractor for each grade of asphalt binder when it has been
determined that the monthly average terminal F.O.B. Selling Price of asphalt binder, Grade
PG 64-22, has fluctuated from the Base Price Index for Asphalt Binder included in the
Contract. The specifications also state that the methods for calculating the monthly
average terminal F.O.B. selling price, for calculating a base price index, and for
determining the terminals used are in accordance with procedures on file with the
Department's Construction Unit (Pavement Construction Section). These methods and
procedures, including procedures for determining the adjusted contract unit price, are as
follows.
Determination, Addition and/or Deletion of Terminals Included in Index
All terminals supplying asphalt binder for use on state projects in North Carolina will be
given an opportunity to be included in the index average. A review will be made by the
Department after the end of each calendar year to determine which terminals supplied
asphalt binder on a regular basis during the previous year. Based on the results of this
review, adjustments will be made annually to the listing of terminals used in determining
the Monthly Price Index for asphalt binder. Any adjustments will be effective beginning
with the May Monthly Price Index and the Base Price Index for the July letting of each
year.
Monthly Average Terminal F.O.B. Selling Price of Asphalt Binder, Grade PG 64-22
(Monthly Price Index)
Asphalt binder suppliers included on the listing of terminals used for the index will
furnish to the Department by 12:00 noon on the 1st of the month or the next workday
after the 1st of the month for each terminal F.O.B. selling price of Asphalt Binder, Grade PG
64-22 in effect on the first day of each month at each terminal. The monthly average
terminal F.O.B. selling price (Monthly Price Index) will then be determined based on a
procedural average of the terminal F.O.B. selling prices by omitting a single terminal with
the highest price and a single terminal with the lowest price and then averaging the
remainder of the prices furnished by the suppliers. The average will be rounded to the
nearest penny and that number will be used as the Monthly Price Index for asphalt binder
for that particular month. In the event that a supplier does not furnish a price to the
Department for a specific terminal on the list, then the Monthly Price Index will be
determined from the remaining terminals.
The monthly average terminal F.O.B. selling price (Monthly Price Index) will be available
by the fifth day of each month on the North Carolina Department of Transportation
Pavement Construction Section Web Site:
www.doh.dot.state.nc.us/operations/dp_chief_eng/constructionunit/paveconst/As
phalt_Mgmt/acprices/
Base Price Index for Asphalt Binder for Plant Mix (Base Price Index)
The base price index for Asphalt Binder for Plant Mix (Base Price Index) to be included in
a proposal/contract along with the applicable date will be the Monthly Price Index in
effect two months prior to the month in which the contract is let. For example, the Base
Price Index for contracts let in April 2012 would be the Monthly Price Index determined
for February 2012. The Base Price Index for a given contract will remain fixed throughout
the life of the contract.
Termination of Price Adjustment - Asphalt Binder For Plant Mix
If asphalt binder suppliers do not provide F.O.B. selling prices from at least four terminals
in a given month, the Contractor will be paid the contract unit price for asphalt binder
used in the work during that month.
If suppliers do not provide F.O.B. selling prices from at least four terminals in a given
month, the asphalt binder price adjustment provision will not be included in proposals for
appropriate future letting.
Contract Unit Price Adjustment Procedures
When it is determined that the Monthly Price Index of asphalt binder on the first business
day of the calendar month during which the last day of the partial payment period occurs
varies either upward or downward from the Base Price Index in the contract, the contract
unit price for asphalt binder for plant mix will be adjusted. The adjusted contract unit
price will be determined by adding the difference between the selling price and the base
price index to the contract unit bid price for asphalt binder.
The adjusted contract unit price will then be applied to the total theoretical quantity of
asphalt binder authorized for use in the plant mix placed during the partial payment
period involved, except that where recycled plant mix is used, the adjusted unit price will
be applied only to the theoretical number of tons of additional asphalt binder materials
required by the JMF.
Adjusted contract unit prices for all grades of asphalt binder, including additional asphalt
binder materials in recycled mixtures, will be based on the average selling price and base
price index for asphalt binder, Grade PG 64-22, regardless of the actual grade required by
the JMF.
In determining the adjusted contract unit price for any material specified in this section
the following formula will be used:
A = B + (D – C)
Where:
A = Adjusted Contract Unit Price
B = Contract Unit Price
C = Base Price Index
D = Monthly Average Terminal F.O.B. Selling Price
In the event the Department is unable to secure an F.O.B. selling price from at least 4
terminals in a given month, payment will be at the contract unit price for each ton of
asphalt binder used in the work during that month.
Payment will be made under:
Pay Item Pay Unit
Asphalt Binder for Plant Mix…………………………………………………………………………Ton
Polymer Modified Asphalt Binder for Plant Mix……..………………………………………Ton
