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Price Adjustment Requirements

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Chapter 90 Program

All municipalities are required to include price adjustment clauses for diesel fuel, gasoline, liquid asphalt, Portland cement concrete, and steel in the bid documents of all construction contracts to be funded under the program described in Chapter 6C, Section 4 of the Massachusetts General Laws (commonly referred to as "the Chapter 90 Program"). Specifically, the price adjustment clauses are required for Chapter 90 Program projects authorized by Chapters 86 and 303 of the Acts of 2008, pursuant to St. 2008, c. 303 An Act Financing Improvements to the Commonwealth's Transportation System, and funds authorized by Chapter 10, Section 4 of the Acts of 2011, pursuant to St. 2011, c. 10 An Act Providing for the Municipal Road and Bridge Maintenance Needs of the Commonwealth.

Both Chapter 303, section 60 of the Acts of 2008 and Chapter 10, section 4 of the Acts of 2011 provide:

Notwithstanding any general or special law to the contrary, all construction contracts funded in whole or in part by the funds authorized by this act shall include a price adjustment clause for each of the following: fuel, both diesel and gasoline; asphalt; concrete; and steel. A base price for each material shall be set by the awarding authority or agency and included in the bid documents at the time a project is advertised. The awarding authority or agency shall also identify in the bid documents the price index to be used for each material or supply. The adjustment clause shall provide for a contract adjustment to be made on a monthly basis when the monthly cost change exceeds +/- 5 per cent.

MassDOT has developed specific contract language for use in MassDOT construction contracts. These price adjustment clauses have been posted on the MassDOT Highway Division website for your information and use. In addition, period prices for Portland cement, diesel fuel, gasoline, and liquid asphalt can be found on the Price Adjustments website.

Please note the website provides an explanation of the two different methods for determining liquid asphalt period prices: one for contracts bid before December 15, 2008 and one for contracts bid after December 15, 2008.

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