Payment Adjustment for Changes in The Ministry of Transportation's Performance Graded Asphalt Cement Price Index for Cold In-Place Recycling (CIR)

TCP number
000-0155
Notice type
Standard
Applies to
NSSP - Non Standard Special Provisions
No. specification
ACPAYADJ - CIR
Posted by
Engineering Materials Office
Notice stage
Decision
Decision posted
Comment period
June 8, 2023 - June 29, 2023 (21 days) Closed
Last updated

This consultation was open from:
June 8, 2023
to June 29, 2023

Decision summary

Apply a payment adjustment based on changes to the ministry’s asphalt cement (PGAC) price index, so MTO can establish the payment adjustment per ton of new PGAC used in the CIR for each month in which CIR paving occurs when the price index for the month differs by more than 5% from the price index for the month prior to tender opening.

Decision details

MTO recently drafted a NSSP for Payment Adjustment Based on Performance Graded Asphalt Cement (PGAC) Price Index for Cold In-place Recycling (CIR). The NSSP includes the followings for asphalt cement adjustment for CIR:

  • A payment adjustment shall be applied based on changes to the ministry’s PGAC price index unless, the Contract Administrator is notified in writing of the choice to opt out within 5 Business Days of receiving a completed MTO form PH-CC-700, Permission to Start Work
  • The PGAC price index shall be published monthly in the Owner’s Contract Bulletin.
  • The PGAC price index is based on the price, excluding taxes, Freight on Board (FOB) the depots in the Toronto area, of PGAC grade PG 58-28 or equivalent.
  • A payment adjustment per ton of new PGAC used in the CIR shall be established for each month in which CIR paving occurs when the PGAC price index for the month differs by more than 5% from the PGAC price index for the month prior to tender opening. When the price index differential is less than 5%, there shall be no payment adjustment established for that month.
  • The payment adjustment for CIR for the month shall be calculated from the formulas specified in this NSSP.

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Original proposal

TCP number
000-0155
Type notice
Standard
Posted by
Engineering Materials Office
Proposal posted

Comment period

June 8, 2023 - June 29, 2023 (21 days)

Proposal details

MTO recently drafted a NSSP for Payment Adjustment Based on Performance Graded Asphalt Cement (PGAC) Price Index for Cold In-place Recycling (CIR). The NSSP includes the followings for asphalt cement adjustment for CIR: 

• A payment adjustment shall be applied based on changes to the ministry's PGAC price index unless, the Contract Administrator is notified in writing of the choice to opt out within 5 Business Days of receiving a completed MTO form PH-CC-700, Permission to Start Work.

• The PGAC price index shall be published monthly in the Owner’s Contract Bulletin.

• The PGAC price index is based on the price, excluding taxes, Freight on Board (FOB) the depots in the Toronto area, of PGAC grade PG 58-28 or equivalent.

. • A payment adjustment per tonne of new PGAC used in the CIR shall be established for each month in which CIR paving occurs when the PGAC price index for the month differs by more than 5% from the PGAC price index for the month prior to tender opening. When the price index differential is less than 5%, there shall be no payment adjustment established for that month.

•The payment adjustment for CIR for the month shall be calculated from the formulas specified in this NSSP

Comment

Commenting is now closed.

This consultation was open from June 8, 2023
to June 29, 2023

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