Payment Adjustment for Changes in The Ministry of Transportation's Performance Graded Asphalt Cement Price Index for Cold In-Place Recycled Expanded Asphalt Mix (CIREAM)

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

• 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 CIREAM shall be established for each month in which CIREAM 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 CIREAM for the month shall be calculated from the formulas specified in this NSSP.