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Contract Escalation Clauses

Price Escalation

In an effort to share the risk of fluctuating materials prices with the contractor, the Department uses several escalation clauses. The Fuel Escalation Clause is used for any contract greater than $250,000. The Fuel Factor Percentage for a contract is calculated based on the value of selected items in the Engineers Estimate to provide an average fuel usage for the contract items. The contractor must request activation of the clause. The Asphalt Escalation Clause is used for any contract with more than 7500 tons of plantmix. Currently the clause only applies to paving grade asphalts. The Steel Escalation Clause is used for contracts with greater than 1 million pounds of steel. The clause only applies to selected items and activation must be requested by the contractor.

Select a link below to open a PDF file to see currently posted escalation prices.

Question on the escalation clauses can be directed to the Construction Division:

Construction Administration
Telephone: 775-888-7460