final estimates level 2 - ctqpflorida.com estimates 2/06... · progress estimates ... bfp = base...

11/1/2017 FDOT Final Estimates Level 2 Release 11, Module 4–1

Final Estimates Level 2

Florida Department of

TRANSPORTATION

Module 4- Fuel and Bit Adjustments

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November 2017


Module Content

• Adjustments in SiteManager– Line Item Adjustments– Contract Adjustments

• Fuel & Bituminous Adjustments

• Fuel & Bituminous Price Indexes

• Fuel Adjustments for Conventional and DB/LS Projects

• Bituminous Adjustments for Conventional and DB/LS Projects


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November 2017


There are two types of Adjustments in SiteManager:

1. Contract Adjustments2. Line Item Adjustments

Adjustments in SiteManager


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All adjustments are inputted in SiteManager. They are either Line Item Adjustments or Contract Adjustments.

Contract Adjustments apply to the whole contract (not for a specific item) such as: settlement cost, revenue cost penalty, etc.\

Line Item Adjustments apply at an item level only, such as Fuel Adjustments, Bituminous Adjustments, etc.

November 2017


Contract Adjustments

• Contract Adjustments are adjustments to the entire project, not a specific pay item.

– See Notes for a list of various contract adjustments

A list of all the Contract Adjustments areas

follows:

• A+B Incentive-Disincentive

• Arbitration Orders

• Cash Retainage Withheld

• Bituminous price adjustments (used on project before automated in SiteManager/forms)

• Court Orders

• Damage Recovery

• Gasoline & diesel price adjustments (used on older projects before automated in SiteManager/forms)

• Incentive-Disincentive

• Liquidated Damages (Maintenance contract Use ONLY)

• Lane Rental Incentive-Disincentive

• Liquidated Savings

• No Excuse Bonus

• Producer Price Index

• Other Adjustment

• Retainage Previously Released

• Retainage (Non-system)

• Revenue Loss Penalty

• Settlement Costs

• Steel Price Adjustment


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November 2017


Line Item Adjustments

• Line Item Adjustments are adjustments to a specific pay item.– See Notes for a list of various

line item adjustments– Bituminous & Fuel

adjustments will be focused on for the remainder of the module

This module focuses on Fuel and Bituminous Adjustments. Below is a list of all the line Item adjustments:

• Asphalt Content

• Asphalt Density

• Directed Source Aggregate Price Adjust.

• Temp. Attenuator/Crash Cushion Repair

• Asphalt Sieve Failures

• Bituminous

• Contingency-Participating Work Order Amt.

• Contingency-Non-Part Work Order Amt.

• Composite Pay Factor

• Concrete Pavement Grinding Incentive

• Concrete Strength Adjustment

• Fuel Adjustment (Diesel)

• Fuel Adjustment (Gasoline)

• Lost or Missing Samples

• Laser Profiler Acceptance Adjustment

• Left in Place at Reduced Pay

• Adj. for deleted work - LS jobs only

• Material Discrepancy Payment Adjustment

• Invoice Matching Adjustment

• Pavement Joint Smoothness Incentive

• PRICE

• Resolution Testing Costs

• Straightedge Adjustment

• Stockpiled Materials Adjustment

• Stockpiled Materials Closure

• Stockpiled Materials Initial Payment

• Substandard Item

• Thickness Adjustment


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November 2017


• Account for the fluctuation in cost between the time of contract bid and current monthly estimate.

• Adjustment applied to the quantities placed by the Contractor for the current month

Fuel and Bituminous Adjustments


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Contracts may have both fuel and bituminous adjustments.

November 2017


http://www.dot.gov/construction/fuel&bit/Fuel&Bit.shtm

Fuel and Bituminous Adjustments

The updated indices will be posted on the Department’s website by the 15th of each month, at: www.dot.gov/construction/fuel&Bit/fuel&Bit.shtm.

Fuel adjustments have two categories: Regular Unleaded Gasoline and Diesel.

Bituminous adjustments, however, have 3 categories which correspond to the design mix of the asphalt. Check the plans for the type of asphalt mix which will correspond to correct the bituminous adjustment column.


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November 2017


Fuel Adjustments

• Per Specification 9‐2.1.1: Adjustment in price for the increase or decrease of fuel prices for pay items

• To Qualify for Adjustment:

– Original contract time must exceed 120 days AND

– Adjustment applied only when the Current Price varies by more than 5% of the Base Price and then only the portion that exceed 5%

• There are over 700 pay items that qualify for fuel adjustments

• Paid as Line Item Adjustment on Progress Estimates

• Adjustment can be positive or negative


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If the project qualifies for a fuel adjustment, the adjustment will start at the beginning of the contract and only on items designated by the Department and posted on the website.

CFP = Current Fuel Price is published by the 15th of every month on the Department’s website

BFP = Base Fuel Price is established at month of bid

November 2017


Fuel Adjustments –Conventional Projects

Conventional Project Adjustment Process:• Adjustments are Automated in SiteManager when the progress estimate is inputted

• Paid on each progress estimate

• Exception: Lump Sum Items & Black Base are not automated & must be manually inserted into SiteManager by the Resident Office


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November 2017


Conventional Fuel Adjustments SiteManager Example

After an estimate is generated in SiteManager, Fuel Adjustments can be viewed by selecting Contractor Payments(+) on the Main Panel, then Contract Adjustments(+), then Line Item Adjustments.

Line Item Adjustments with SYSTEM in the “Entered By” box are automatic adjustments.

Note: SiteManger automatically calculates the fuel adjustments based on the initial contract information (i.e. contract time & base fuel index) inputted when the project was setup by the District SiteManager coordinator and the monthly inputted Fuel Price Index. The Resident Office should verify the project information in SiteManager prior to the Notice to Proceed in the event any project information needs to be corrected.


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November 2017

Once the monthly estimate and fuel & bituminous adjustments are inputted in SiteManager, a report will need to be created to determine if any manual adjustments are necessary. This report is generated in the Ad-Hoc Report System- State Construction Dashboard, Estimates, Fuel Adjustment Report - With NEW Base Options. See CPAM 5.14 for additional information.

The page of the report shown above is the Gasoline Adjustments. The automatic adjustments generated in SiteManager are distinguished by one asterisk(*). Adjustments that will require manual input are distinguished by two asterisks(**).


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November 2017


Conventional Fuel Adjustments SiteManager Example


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Line Item Adjustments with a user name in the “Entered By” box are manual adjustments.

November 2017


For a period of increasing prices: Ai = Fi (Pi – 1.05 Pb)

Ai = Adjusted dollar amount

Fi = Total gallons calculated

Pi = Average price for fuel during month “i”

Pb = Average price for fuel during the base month (month of letting)

For a period of decreasing prices: Ai = Fi (Pi – 0.95 Pb)

Ai = Adjusted dollar amount

Fi = Total gallons calculated

Pi = Average price for fuel during month “i”

Pb = Average price for fuel during the base month (month of letting)

Conventional Fuel Adjustments Manual Calculation Example


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November 2017


The quantity for Concrete Class II, Superstructure on the monthly estimate is 82.70 CY. When the project was let the price index was 2.9628. At the time of the monthly estimate, the price index is 2.0297. SiteManager will generate the following calculations and fuel adjustment for that item:

Est. Qty. x Gasoline Factor = Calculated Gallons Used

82.70 CY x 7.956679 = 658.019 gallons

For a period of decreasing prices: Ai = Fi (Pi – 0.95 Pb)Ai = Adjusted dollar amountFi = Total gallons calculatedPi = Average price for fuel during month “I”Pb = Average price for fuel during the base month (month of letting)

Adjusted Dollar Amount:

Ai = 658.019 x (2.02970 – 0.95 x 2.96280) = ‐ $516.52

Conventional Fuel Adjustments Manual Calculation Example


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The adjustment in this example is automatically generated by SiteManager.

Standard Specification 9-2.1.1 explains how the price adjustment for fuel is calculated for a period of decreasing and increasing prices.

November 2017


• Design‐Build & Lump Sum Projects Adjustment Process:

• Contractor enters quantities on the Contractor’s Certification of Quantities for Fuel Adjustment form

• Resident Office spot checks quantities and enters adjustment as a line item in SiteManager

• Checked by the Department

Fuel Adjustments –DB and LS Projects


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November 2017


Fuel Adjustments –DB/LS Certifications

On Design Build (D/B) and Lump Sum (LS) projects, the Contractor will fill out the Contractor’s Certification of Quantities for Fuel Adjustment form, which is an automated form available on the Department’s website: http://www.dot.gov/Construction/fuel&bit/FuelForms.shtm. The quantities completed are inputted on this form based on the Schedule of Values (SOV). The form calculates the gallons of gasoline and diesel and the adjustment dollar amount, as applicable. All certifications need to be included with the Contractor’s monthly submittal and scanned into EDMS as part the Final Estimates Package.

Note: DB/LS projects have no pay items, only descriptions of pay items as noted in the SOV. Therefore, if the equivalent description of a pay item is not included in the certification form, such pay item will not receive a fuel adjustment.

The CCEI or In-house oversight will be responsible for spot checking the base and monthly indexes used, pay item quantities and adjustment amount, and ensure that the information inputted on the Contractor’s Certification of Quantities for Fuel Adjustment form is true and correct. The CCEI/In-house oversight will enter the adjustment amount in SiteManager as a line adjustment.


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November 2017


Fuel Adjustments –DB/LS Certification

After project information and indexes are inputted on the Setup tab, click “Go To Main Sheet” and fill out the quantities. Click “Hide Unused Items” to create the certification above.

The Resident Office is responsible for spot checking the base and current indexes, pay item quantities and adjustment amount to ensure that the information inputted on the Contractor’s Certification of Quantities for Fuel Adjustment form is correct. The Resident Office will enter the adjustment amount in SiteManager as a line item adjustment.


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November 2017


• To Qualify for Adjustments:– Original Contract time of more than 365 calendar days OR more than 5,000 tons total bid quantity of asphalt concrete AND

– Adjustment is applied only on the material when the Current Asphalt Price Index differs from Base Asphalt Price Index by 5% and only on portion that exceeds 5%

• Per Specification 9‐2.1.2: Adjustment in payment for bituminous material pay items to reflect increase or decrease in the Asphalt Price Index (API) for the following items:− Superpave Asphalt Base

− Turnout Construction (Asphalt)

− Asphalt Treated Permeable Base

− Superpave Asphaltic Concrete

− Miscellaneous Asphalt Pavement

− Asphalt Rubber Membrane Interlayer

Bituminous Adjustments


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CAPI = Current Asphalt Price Index is published on the Department’s website by the 15th of each month.

BAPI = Base Asphalt Price Index is established at month of bid.

Bituminous Adjustments apply to all types of contracts: • Conventional: Projects with pay items for each item of work• Lump Sum (LS): Alternative Delivery where all items of work are included in

a lump sum pay item• Design/Build (D/B): Alternative Delivery where the designer and contractor

are a single entity. Typically Design Build projects are also Lump Sum. • Push Button: A type of project providing a means of quickly responding to

critical highway construction needs.

November 2017


Bituminous Adjustments

Conventional Project Adjustment Process:• Contractor shall submit Contractor’s Certification of Quantities (Form 700‐050‐66)

• Resident Office spot checks quantities & indexes and enters adjustment as a line item in SiteManager

• Checked by the Department• Payment is based on the quantity produced and accepted each month on the Progress Estimates

• Adjustment can be positive or negative


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Additional notes to remember when handling bituminous adjustments include:

• Asphalt Cement (AC) includes Asphalt Rubber Membrane Interlayer (ARMI) as additional gallons.

• In penalty areas when the asphalt is left in place at no pay, this tonnage will not be included in the adjustment.

• No Adjustment is made on Optional Base unless Asphalt Base Only is specified. Check the Typical Section for the base option specified.

• On Composite Base, a Bituminous Adjustment will be done for the asphalt portion when the Contract criteria is met.

• There are NO adjustments on temporary asphalt, such as detours, etc.

November 2017

Note: Be sure that Contractor uses appropriate Base Index/Current Index for each Contract when inputting on Form 700-050-66 for Conventional Projects.

To spot check the total gallons, use the following equation:(2.331) x (6.25) x (Tonnage) = Total Gallons


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November 2017

On Conventional Projects: The Contractor or the Contractor’s Authorized Agent will sign this form and submit it in monthly to the PA in Excel format. Certification of Quantity Forms shall not be accepted unless they are completed entirely and signed by the Contractor or the Contractor’s Authorized Agent.


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November 2017


Bituminous Adjustments –Design Build/Lump Sum

Design‐Build and Lump Sum Projects Adjustment Process:• Contractor enters quantities of material on Contractor’s Certification of Quantities for Bituminous Adjustment form

• Resident Office provides oversight for quantities & indexes and inputs the adjustments into SiteManager


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Lump Sum projects will have bituminous adjustments if original Contract Time is inexcess of 365 days or more than 5,000 total tons of asphalt pavement items. TheContractor will fill out the Contractor’s Certification of Quantities forBituminous Adjustment form, which is an automated form available on theOffice of Construction website. By recording the quantities of asphalt itemactivities completed during that cutoff period, the certification form will calculatethe total gallons and adjustment, if applicable. The certification form shall bedated and included with the Contractor’s monthly estimate.

The CCEI or In-house oversight will be responsible for spot checking the indexdifference, asphalt activity and the gallons and ensure that the informationinputted on the Contractor’s Certification of Quantities for BituminousAdjustment form is true and correct.

All certification forms will be submitted with the Final Estimates Package.

Note: On renewable Push Button Contracts, where the renewable Contract ismore than 365 days, the Department will adjust the bid unit price for bituminousmaterial.

November 2017

Note: Check that Contractor uses appropriate Base Index for each contract.

To check the total correct gallons, use the following information:

For asphalt concrete payable by the ton or SY, the standard mix design has 6.25% liquid asphalt weighing 8.58 lbs/gallon. Therefore to calculate the gallons of bituminous:

Bit (% AC Content) X Tonnage used X 2000 lbs/Ton = Gallons on the Job100 8.58 lbs/Gal

The simplified version of this equation is: 2.331 X 6.25 X Tonnage = Total Gallons

Where 2.331 originates from: 2000 lbs/Ton = 2.331 Gal/Tons100 X 8.58 lbs/Gal


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November 2017

The worksheet will calculate the monthly dollar amount for the Asphalt and for the Polymer Material. On LS/Design Build Projects: The Contractor will attach this certification form and record these gallons on the Certified Monthly Estimate as required in Standard Specification Section 9-11.


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November 2017


FUEL BITUMINOUS

Reference(s) Standard Specification 9‐2.1.1CPAM 5.14

Standard Specification 9‐2.1.2CPAM 5.14

Original Contract Time

Greater than 120 Days Greater than 365 days OR more than 5,000 tons (bid quantity) of asphalt

Price Difference

Difference between CFP and BFP must exceed 5% and only the portion exceeding 5% will have an adjustment

Difference between CAPI and BAPImust exceed 5% and only the portion exceeding 5% will have an adjustment

Payment for Adjustment

Conventional Contracts: Automatically Adjusted in SiteManager (Exception: LS & Black Base)

Lump Sum/Design Build Contracts: Contractor's Certification of Quantities for Fuel Adjustment & manually inputted into SiteManager

Conventional Contracts: Contractor’s Certification of Quantities (Form 700‐050‐66)

Lump Sum/Design Build Contracts: Contractor’s Certification of Quantities for Bituminous Adjustment

Module Review


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November 2017


ANY QUESTIONS?

Florida Department of

TRANSPORTATION


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November 2017

final estimates level 2 - ctqpflorida.com estimates 2/06... · progress estimates ... bfp = base...

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