EXHIBIT F by keralaguest

VIEWS: 6 PAGES: 2

									Date:                                                                                    Book 1


EXHIBIT F – ADJUSTMENT FOR COST OF FUEL AND ASPHALT
MATERIALS
1. General
   This price adjustment provision minimizes risk to the Contractor and CDOT due to price
   fluctuations for fuel and asphalt materials that might occur prior to Project Completion.
   Contract price adjustments will be made to reflect increases or decreases in the prices of
   gasoline and diesel fuels from those in effect on the first Working Day of the month of the
   Proposal Due Date.
2. Definitions
   A. Bid Base Oil Price (BBOP)
        The West Texas Intermediate (WTI) crude oil price taken from The Wall Street Journal’s
        summary of prices on the first working day of the month of the Proposal Due Date as
        shown on: http://www.dot.state.co.us/DesignSupport/Construction/
        Fuel%20Cost%20Adjustments/ Fuel%20Cost%20Adjustment%20Index.htm. If there is a
        discrepancy between the oil price shown on the CDOT website and oil price taken from
        the Wall Street Journal summary of prices at the close of business on the first working
        day of the month, the Wall Street Journal summary of prices will apply. If CDOT
        discontinues posting the oil price used for the fuel cost adjustment on a CDOT website,
        the BBOP shall be the oil price taken from the Wall Street Journal summary of prices at
        the close of business on the first working day of the month, as determined by CDOT.
        The BBOP will be the basis for determining if an adjustment may be requested until an
        actual fuel price adjustment is made, if any, and a Change Order executed.
   B. Adjusted Base Oil Price (ABOP)
        If a fuel price adjustment is made, the COP at the time of adjustment will become the
        ABOP and will be the basis for determining future adjustments.
   C. Current Oil Price (COP)
        The COP is the WTI crude oil price taken from The Wall Street Journal’s summary of
        prices on the first working day of each month as shown on: http://www.dot.state.co.us/
        DesignSupport/Construction/Fuel%20Cost%20Adjustments/
        Fuel%20Cost%20Adjustment%20Index.htm. If there is a discrepancy between the oil
        price shown on the CDOT website and oil price taken from the Wall Street Journal
        summary of prices at the close of business on the first working day of the month, the
        Wall Street Journal summary of prices will apply. If CDOT discontinues posting the oil
        price used for the fuel cost adjustment on a CDOT website, the COP shall be the oil
        price taken from the Wall Street Journal summary of prices at the close of business on
        the first working day of the month, as determined by CDOT.
   D. Value of Work Remaining
        The Value of Work Remaining (VWR) shall equal the Contract Price at NTP 1, less the
        cumulative amount invoiced by the Contractor, and less Change Orders that have been
        executed. The VWR shall be based upon Approved invoice amounts. Revise
3. Determination of Adjustments




                                                                                       Exhibit F - 1
Date:                                                                                   Book 1


  Price adjustments will only be made when the BBOP varies by more than 25% from the
  COP, and only for that portion of the variance in excess of 25%. Price adjustment may be
  either plus or minus.
  The total price adjustment (increase or decrease) will be distributed evenly for each month
  over the remaining period prior to the Project Completion Deadline. No time extension will
  be granted for a price adjustment. The first payment will be made on the first invoice after
  execution of the Change Order. The adjustment may be invoked more than one time during
  the course of the Contract.
  This provision is not designed to estimate actual changes in prices of fuel, asphalt materials
  or other petroleum-based products used to construct the Project, but to provide a
  reasonable basis for price adjustments.
  CDOT, under the provision herein, will determine compensation adjustments. It will be
  presumed that Contractor has relied on these provisions for compensation adjustment when
  determining the Contract Price.
  If the COP per barrel of WTI crude increases by 25 percent or more above the BBOP (or
  ABOP), the Contract Price will be increased by the amount equal to:

                            (COP- 1.25 BBOP)(40/1000)(VWR)
                                    42
  If the COP per barrel of WTI crude decreases by 25 percent or more below the BBOP (or
  ABOP), the Contract Price will be decreased by the amount equal to:

                            (COP - 0.75 BBOP)(40/1000)(VWR)
                                     42
  Each time the COP fluctuates up or down by 25 percent or more, the Contract Price will be
  adjusted, upwards or downwards, as indicated above. There is no limit to the number of
  adjustments in BBOP (or ABOP) and price adjustments that may be applied to the Contract
  Price.
  The amount of the price adjustment calculated in accordance with this Section will be
  rounded to the nearest $1,000 for inclusion in the Change Order.




                                                                                      Exhibit F - 2

								
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