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Accession Number PB2013-109287
Title Price Adjustment Clauses: Report.
Publication Date Jun 2013
Media Count 86p
Personal Author D. E. Newcomb J. Epps R. Lenz
Abstract Price adjustment mechanisms exist to account for fluctuations in commodity or labor prices and have been used for highway construction in 47 states. They are useful in stabilizing bid prices in times of economic uncertainty and preventing defaults on contracts. This study examined the feasibility of establishing price adjustment practices on highway construction contracts in Texas. Researchers found that there is not a consensus among TxDOT districts or contractors about using price adjustment clauses (PACs), but those who favor such would use them for longer term, higher value projects if they were to be instituted. Because there is not a clear agreement at this time among contractors and among TxDOT personnel interviewed, implementation of PACs on construction projects cannot be recommended.
Keywords Bids
Commodities
Contract administration
Fluctuations
Highway construction
Implementation
Labor
Price adjustment clause(PAC)
Prices
Project management
Texas


 
Source Agency Federal Highway Administration
Texas Transportation Institute Texas A&M University
NTIS Subject Category 70B - Management Practice
50A - Highway Engineering
43G - Transportation
91B - Transportation & Traffic Planning
Corporate Author Texas Transportation Inst., College Station.
Document Type Technical report
Title Note Technical rept.
NTIS Issue Number 1321
Contract Number N/A

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