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Contract Escalation Clauses

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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 7,500 tons of plantmix. Currently the clause only applies to paving grade asphalts. The Steel Escalation Clause will be included in a contract’s Special Provisions and will only be considered when the Adjustment Price is more than a 10% increase or decrease from the Benchmark Price for steel.

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

Questions on the escalation clauses can be directed to the Construction Division at 775-888-7460.

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