Payment adjustment for tack coat and granular sealer based on changes to the MTO’s performance graded asphalt cement (PGAC) price index

Payment adjustment for hot mix asphalt based on changes of MTO’s performance graded asphalt cement (PGAC) price index has been implemented since 2000s. This proposal is an extension of the current administration practice, and the same principle of payment adjustment will be applied on materials of granular sealer (OPSS 305) and tact coat (OPSS 308).

The contractor is allowed to opt-out payment adjustment from the contract at the start of the contract work. The PGAC price index as published monthly on the Contract Bulletin is compared to the price index prior to tender opening to determine the payment adjustment.

A provincial non-standard special provision (NSSP) will be developed and associated with an PHCC form to assist contract administration staff to calculate the payment adjustment. Only accepted materials applied within the month of the price index should be included for the payment adjustment calculation. The PGAC content in the materials (tack coat or granular sealer) is calculated based on the formulae in the NSSP, and the calculated PGAC will be used as the quantity to determine the payment adjustment for the tender item of granular sealer or tack coat.