Morning Dan,
This might help you-NJDOT does have a defined fuel price adjustment mechanism, but it's generally limited to specific pay items rather than broadly covering activities like demolition.
For reference, NJDOT calculates fuel adjustments using:
F = (MF − BF) × G
Where:
- MF = Fuel Price Index at time of work
- BF = Baseline index (month prior to bid)
- G = Eligible gallons tied to specific items
They post the monthly Fuel Price Index here:
https://www.state.nj.us/transportation/business/aashtoware/PriceIndex.shtm
Also, per their spec, if the fuel index increases by 50% or more above the base, no work should proceed on applicable items without written approval from the RE.
Important point-NJDOT limits fuel escalation to items listed in their fuel adjustment table (Table 160.03.01-1), and demolition items are typically not included unless they are part of a qualifying pay item.
We haven't seen FHWA expand eligibility to include demolition-specific items either-most agencies still restrict escalation to predefined categories like asphalt, excavation, and hauling.
In most cases, the only option is project-specific negotiations or special provisions when fuel costs significantly impact demo-heavy work.
Curious if anyone has had success getting broader coverage approved.
Thanks,
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Rolando Ayala
Project Management
River Edge NJ
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