Reese Construction Company 4/27/2023

1 The adjustment is not a guarantee of full compensation for changes in the cost of asphalt 2 binder. The Contracting Agency does not guarantee that asphalt binder will be available 3 at the reference cost. 4 5 The Contracting Agency will establish asphalt binder reference costs twice each month 6 and post the information on the Agency website at: https://wsdot.wa.gov/business- 7 wsdot/contracts/about-public-works-contracts/payments-reportinq/asphalt-binder- 8 reference-cost. The reference cost will be determined using posted prices furnished by 9 Poten & Partners, Inc. If the selected price source ceases to be available for any reason, 10 then the Contracting Agency will select a substitute price source to establish the reference 11 cost. 12 13 Price adjustments will be calculated one time per month. No price adjustment will be made 14 if the Current Reference Cost is within +/-5% of the Base Cost. Reference costs for 15 projects located in Eastern versus Western Washington shall be selected from the column 16 in the WSDOT website table labeled "Eastern", or"Western", accordingly. The adjustment 17 will be calculated as follows: 18 19 If the reference cost is greater than or equal to 105% of the base cost, then 20 Asphalt Cost Price Adjustment = (Current Reference Cost—(1.05 x Base Cost)) x (Q 21 x 0.056). 22 23 If the reference cost is less than or equal to 95% of the base cost, then 24 Asphalt Cost Price Adjustment= (Current Reference Cost—(0.95 x Base Cost)) x (Q 25 x 0.056). 26 27 Where: Current Reference Cost is selected from the website table based on 28 the "Date Effective" that immediately precedes the current month's 29 progress estimate end date. For work completed after all authorized 30 working days are used, the adjustment will be based on the posted 31 reference cost during which contract time was exhausted. 32 33 Base Cost is selected from the website table based on the "Date 34 Effective"that immediately precedes the contract bid opening date, and 35 shall be a constant for all monthly adjustments. 36 37 Q =total tons of all classes of HMA paid in the current month's progress 38 payment. 39 40 "Asphalt Cost Price Adjustment", by calculation. 41 "Asphalt Cost Price Adjustment" will be calculated and paid for as described in this 42 section. For the purpose of providing a common proposal for all bidders, the Contracting 43 Agency has entered an amount in the proposal to become a part of the total bid by the 44 Contractor. 45 46 END DIVISION5.RTF 47 48 49 END DIVISION 5 50 2023 PAVEMENT MAINTENANCE OVERLAY WO#3789 February 14,2023 67