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.
Fuel Escalation Prices, Asphalt Escalation Prices and Steel Escalation Prices are maintained by the Construction Division. Any Question on the escalation clauses can be directed to the Construction Division at 775-888-7460.
