Temporary Works in Construction Discussion Group

  • 1.  Fuel Escalation for Demo Items

    Posted 05-10-2022 08:33 AM
    Morning,

    Has anyone had any luck with getting DOT buy-in on fuel escalation for demolition items? We've typically seen escalation clauses for asphalt and certain excavation items, but they don't cover demo items. Has FHWA made any determination that more items are eligible for coverage, given the current fuel prices?

    Thanks

    Dan

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    Daniel Waugh Aff.M.ASCE
    Project Manager
    JR Vinagro Corporation
    Johnston RI
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  • 2.  RE: Fuel Escalation for Demo Items

    Posted 12 days ago
      |   view attached

    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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