Every effort should be made to prevent substandard work and/or noncomplying material from being incorporated into the project. However, when work and/or materials are deemed to be noncomplying, Specifications 1105 and 1101 give authority to the project engineer for determining if construction work or materials are acceptable and/or within reasonably close conformity to the plans and specifications. Therefore, the project engineer must decide whether deficient work is to be removed and replaced or left in place with a price adjustment. Unusual situations or circumstances may warrant consultation with the Office of Construction and the Office of Materials.

NOTE: A price adjustment is no substitute for specification compliance and "unacceptable work" shall always be removed and replaced with acceptable work. Further, contractors need to be given an option of removing deficient work and replacing with acceptable work in lieu of a price adjustment.

Price adjustments of $100 or less need not be formalized in a change order.

Guide Schedules for Price Adjustments
A. Gradation

Unless otherwise specified, variations in the gradation of aggregates shall be price adjusted as prescribed by "Price Adjustment for Aggregate Gradation Test Deviation Price Adjustments," in Appendix 2-34(A). These adjustments apply to variations in gradations for:
• Portland Cement Concrete
• Hot Mix Asphalt

When aggregates are mixed with asphaltic materials, price adjustments shall apply to the mix only.

B. PCC Slump, Air Content, and Rain Damage

1. Concrete Slump Price Adjustments are prescribed in Appendix 2-34(B). Concrete Air Content, Water Cement Ratio, Vibrator Frequency, Certified Plant Inspection, and Late Curing Application Price Adjustments are prescribed in Appendix 2-34(C).

2. Rain Damaged Portland Cement Concrete
When rain damage occurs, removal and replacement may be required by the project engineer in accordance with Specification 2301.19. However, damage must be determined to be severe enough to warrant such action. Contact the District Construction Engineer and the Office of Construction for assistance, if needed.

If work is allowed to remain, Specification 1109.03 C requires the project engineer to determine "... a modification of the contract unit price. The following CASES shall be used for determining rain damage price adjustments. NOTE: Price adjustments are applied to an entire area encompassing the damage. (This means full width placed when damage occurred, beginning at the first transverse joint before any damage and ending at the first transverse joint after damage.)

ADJUSTMENT SCHEDULE

CASE I (Payment is 95% of contract unit price.)
Texture is absent from practically all of surface area. Surface appearance may have a "sandy" appearance or may be "pock" marked from the rain droplets. An occasional edge repair may be required due to excess edge slump or from edge rounding. Small areas along edge may have coarser particles of fine aggregate exposed. Surfaces finished in the rain or after a rain are also included in Case I.

CASE II (Payment is 90% of contract unit price.)
Texture is totally absent from the surface and cement mortar has been eroded to an extent that coarser particles of the fine aggregate fraction are generally exposed. Some slight troughs or depressions are apparent, exposing coarse aggregate particles, but this damage is confined to a limited area or randomly spread intermittently throughout damaged area. Some edge repairs may be required to restore eroded edges. Surface mortar that was removed by rain water, but later replaced or supplemented with plastic concrete is included in Case II since a cold joint or sand lens with minimal Portland cement paste contact may have been inadvertently incorporated into the slab.

CASE III (Payment is 85% of contract unit price.)
Surface mortar has been practically all removed to an extent that coarse particles of the coarse aggregate fraction are visible. Considerable erosion of edges has occurred, but not to an extent that pavement width is affected. Intermittent edge repair may be required as well as some surface patching of slight troughs or depressions that may have formed in pavement surface due to flowing water. Pavement that has been rain damaged with no attempt of covering or protection by the contractor is also included in Case III.

Severe rain damage may require "localized area" repair by bridge deck overlay procedures. Full depth removal and replacement may be required if edge damage is severe. Severe cases of rain damage should be referred to the Office of Construction for review prior to determination of repair or replacement.

In addition to above described price adjustments and repairs, slab surfaces with missing, omitted, or damaged texturing shall have texture re-established by grinding prior to acceptance by project engineer.

C. "L" Joint Tie Steel Deficiencies
Tolerance problems with "L" joint tie steel shall be corrected according to procedures established in Construction Manual 9.26. (Note: "BT" and "KT" deficiencies usually require field correction.)

An adjustment in the contract unit price shall be made for out of tolerance "L" joint tie steel areas. This price adjustment should be a reduction of 5% to the contract unit price per m² (sq. yd.) for affected areas. It should be applied to a computed effective area bounded by one half the distance to closest adjacent "in tolerance" (in each direction) multiplied by the placement width. This price adjustment is intended not to apply to individual out of tolerance tie steel.

D. Bridge Floor Overlay price adjustments are prescribed in Appendix 2-34(D).

E. Macro texture adjustments will be determined by the project engineer on a case-by-case basis depending on severity and amount of surface area involved.

For texture depth measurement criteria, refer to Construction Manual 9.43. Texture depths less than 1.5 mm (1/16 inch) shall be corrected by sawing in grooving or diamond grinding. Texture depth exceeding 4.5 mm (3/16 inch) may require price adjustment as directed by project engineer. Price adjustments for over depth grooving are found in Appendix 2-34(E).

F. Traffic Control

1. Price adjustments may be applied for failure to comply with traffic control requirements in the contract documents. Contract price adjustments will be determined by the project engineer, based on magnitude and frequency of violations. A suggested sliding scale is $250 for the first violation, $500 for the second violation, $1000 for the third, etc. progressively doubling the amount of each following violation. See flowchart in Appendix 2-15 for further guidance.

Price adjustment violations will be counted from first violation through last violation for an entire contract. It is a prime contractor's responsibility to ensure a safe work zone for all construction activities regardless of work in progress or who is doing that work. Therefore, violations will accumulate against the "contract" and not be separated or individualized by subcontractor.

Examples of situations where a price adjustment would be appropriate include:

• Failure to maintain traffic control devices (costs incurred by the contracting authority may be recovered against this item)
• Working without proper traffic control setup
• Unauthorized crossing of interstate or other multilane divided highway median
• Use of unauthorized, substandard, or non-standard traffic control items such as incorrect sign sheeting or unapproved floodlights
• Violations of, or failure to comply with, traffic control requirements in the contract documents

It is not intended that minor deficiencies be price adjusted if corrected in a timely manner. In addition to price adjustments, project engineers may suspend work for irresponsible and/or repeated failure to conduct construction activities using proper traffic control procedures.

2. Failure to maintain traffic control devices and signs on a daily basis continues to be a concern of the Department. Price adjustments are appropriate for failure to adequately maintain these devices and signs. To determine an appropriate daily price adjustment for lack of maintenance, the total bid price for the traffic control item should be divided by the number of working days allowed on the contract. This calculated amount should then be divided in two to determine an appropriate daily maintenance value. This daily maintenance value would be the appropriate price adjustment for failure to maintain traffic control devices and signs.

The daily maintenance price adjustment calculated below is in addition to other traffic control price adjustments.

An example calculation to determine this daily maintenance value follows:

Traffic control bid item amount (TC) = $25,000
Number of contract working days (WD) = 100
Daily maintenance price adjustment (PA)
PA = (TC/WD)/2
PA = ($25,000/100)/2 = (250)/2 = $125
PA = $125

3. Occasionally contractors fail to provide the required traffic control technician or have the daily traffic control diary completed during the construction of the project.

• An appropriate price adjustment for failure to provide a traffic control technician is 5% of the traffic control bid item price or $250, whichever is greater.
• An appropriate price adjustment for failure to provide a traffic control diary for review during construction activities is an additional 5% of the traffic control bid item or $250, whichever is less.
• An appropriate price adjustment for failure to submit to the engineer upon project completion a traffic control diary is an additional 5% of the traffic control bid item price or $250, whichever is greater.
• These price adjustments are independent of each other and are also in addition to other traffic control price adjustments.

4. When a flagger is incorrectly flagging according to the Flagger’s Handbook, as referenced in Standard Specification 2528.10, the project should have the Flagger bid item price adjusted. This price adjustment should be one half of the daily unit bid price for the Flagger item.

Examples of situations where a flagger price adjustment would be appropriate include:

• Incorrect flagging procedures
• Nighttime flagging without a correctly lighted flagger station or without appropriate nighttime flagging equipment or apparel
• Incorrect, inappropriate, or incomplete flagger attire
• Use of incorrect STOP/SLOW paddle
• Failure to carry their flagger training card

When an untrained flagger is used in violation of the specifications, the flagger shall not be measured and paid. The flagger shall continue to flag for the remainder of the day and a trained flagger shall be substituted the next day. Unattended flagger stations are a severe violation of the specifications and should be price adjusted per Item 1 price adjustments.

These price adjustments are also in addition to other traffic control price adjustments.

G. Asphalt

1. Liquid Asphalt
a. Viscosity or Penetration
When noncomplying tests occur, determine the quantity affected. Average all noncomplying quality control tests and use that average in conjunction with Appendix 2-34(F) to determine if, or how much, price adjustment is warranted.
b. Residue
The determination of compliance for emulsions used as tack coats shall be based on residue percentage. Undiluted emulsion contains a minimum of 57% asphalt residue. Emulsion diluted with one part emulsion to one part water shall contain a minimum of 28.5% residue.

When noncomplying tests occur, determine the quantity affected. Average all noncomplying quality control tests and use that average in conjunction with Appendix 2-34(G) to determine if, or how much, price adjustment is warranted.

2. Asphalt Binder - Viscosity

When a noncomplying viscosity test occurs, establish the quantity of material affected. This quantity may be the total asphalt binder used that day, unless intermediate quality measurements have been made during the day. The quantity affected shall be in relation to the proportion of noncomplying samples to the total number of asphalt binder samples obtained that day.

Example:

Total samples taken during the day Number of failing samples for the day Total asphalt binder used that day Quantity affected = (2 ÷ 5) x 200

= = = =

5 2 200 Mg (tons) 80 Mg (tons)

Noncomplying test results for the day shall be averaged to determine the amount of deviation from specification requirements. This average will be used to apply the appropriate percent of payment for the quantity affected. Use Price Adjustment schedule in Appendix 2-34(H) to obtain the applicable payment adjustment.

The materials, both liquid asphalt and asphalt binder, are used on the basis of certification. The follow-up acceptance testing is performed to verify the compliance so work will not be delayed pending the test results. However, if the material has not been incorporated and acceptance tests indicate noncompliance, the material will be rejected.

Unless indicated otherwise in the contract documents, the contractor must use performance graded (PG) asphalt binders. If a PG asphalt binder is used but the properties do not comply with specifications, consult with the Office of Materials, the Office of Construction, and the District Materials Engineer for appropriate resolution. A price adjustment may or may not be appropriate depending upon the circumstances involving each situation.

3. Asphalt Binder Content

The determination for compliance with the specifications of the asphalt binder content control shall be made for periods not exceeding one day in length. Determinations shall be made for shorter time intervals when noncompliance for the shorter intervals has occurred.

The specifications for hot mix asphalt construction require the contractor to maintain the asphalt binder content within plus or minus 0.3 percentage points of the percent intended. The percent intended is given on the job-mix formula sheet issued by the Office of Materials in Ames.

If the tank stick results indicate that a noncomplying asphalt binder content has been obtained and a price adjustment is necessary, it is recommended that the Guide for Price Adjustment schedule in Appendix 2-34(I) be is used to determine an adjustment. The adjustment will be made on the quantity of HMA mixture affected. It is not applied to the asphalt binder. No payment will be made for asphalt binder used in a mixture in excess of tolerance specified.

Excessive asphalt binder content can result in low lab voids which can, in turn, result in a high potential for pavement failure due to flushing and rutting. When the deviation from intended asphalt binder content is greater than 0.3% and the lab voids for the lot are extremely low, the District Materials Engineer should be consulted regarding the rutting potential of the pavement. In cases where severe rutting or flushing develops or is likely to develop, removal and replacement of the noncomplying HMA pavement should be considered in lieu of price adjustment.

The Guide for "Price Adjustment for Deviation in Asphalt Binder Content" in Appendix 2-34(I) is intended to be used for tank-stick measurement results. When the asphalt binder quantity involved is 200 Mg (tons) or less, tank-stick measurements lack precision and cannot be used as a basis for determining asphalt binder content, noncompliance, and assigning price adjustments. In this case, the average of tank-stick measurement results from the day before and the day after may be used to provide further verification.

The procedures listed in Materials I.M. 508 and I.M. 509 should be followed closely in making tank-stick measurement calculations.

The contractors are cautioned to observe the following procedures in order to help insure accuracy of the determinations:

• Keep the storage tank level and in good condition
• Make sure that the asphalt binder in the surge tank is exactly the same level each time that measurements are made
• Try not to drain the asphalt binder level in the tanks into the heater coil area when measurements are made
• See that rail cars and transport trucks are completely unloaded or any unused asphalt binder returned is weighed or measured

To eliminate misunderstandings and uncertainties, it is strongly urged that an authorized representative of the contractor observe all sampling and tank-stick measurements and check all calculations. A contractor's representative should also be requested to initial or sign the field book or record sheet containing the measurements and results as they are made.

4. Segregation in Hot Mix Asphalt Pavement

When mixture segregation occurs in the pavement such that the compositionand quality of the mixture required by specification are not uniformly attained, the sections judged deficient may be required to be removed and replaced as defective work. An adjustment in contract price may be made for deficient work for the cases described in the following schedule.
a. Pavement Surface
The adjustments in contract price are to be applied to the entire paver lane width and lift thickness between extreme areas of segregation. Price adjustment shall apply only to the payment for the HMA mixture. Price adjustments are defined in Appendices 2-34(K.1) and 2-34(K.2).

ADJUSTMENT SCHEDULE

Case I (Payment is 80% of contract unit price.)
When uniform surface texture and mixture composition is evident (by visual observation) except for occasional and random areas of segregation, the mix shall be subject to price adjustment if the area determined segregated equals or exceeds 3 square meters per metric station (1 sq. yard per station) per paver width (length determined by longitudinal distance both directions from segregated area).

Case II (Payment is 50% of contract unit price.)
When a nonuniform surface texture and mixture composition is evident (by visual observation) and there is a regular interval of numerous areas of segregation connected or nearly connected with longitudinal traces of segregation, the mix shall be subject to price adjustment if the total area segregated equals or exceeds 9 square meters per metric station (3 sq. yards per station) per paver lane width (length determined by longitudinal distance both directions from the extreme ends of areas of segregation).

Case III Longitudinal Streaks (Payment is 80% of contract unit price.)
When a nonuniform surface texture and mixture composition is evident (by visual observation) and in the form of longitudinal streaks of 75 mm (3 inches) or more in width, the mix shall be subject to price adjustment if the segregation occurs at a rate that exceeds 3 square meters per metric station (1 sq. yard per station). The rate is determined by multiplying approximate width by length of the streaks to determine area and dividing by the length of the streaks (in stations). Longitudinal streaks most commonly occur with the windrow-pickup process, particularly when resurfacing super elevated curves. Streaks are typically seen in the wheelpath areas and occasionally in the center of the lane. Streak widths typically vary from 75 to 300 mm (3 to 12 inches) and may be continuous or intermittent. This type of segregation results in longitudinal cracking.

More severe surface and mixture segregation may require corrective procedures as:

• full width thin layer 25 mm (1 inch) thick resurfacing or
• removal of HMA mixture course with no extra payment and replacement with construction that fully complies

Note: Determination of segregation in HMA pavement is by visual observation in accordance with current specifications. The engineer may consider further verification through coring and extraction. Segregation case examples, with corresponding price adjustment calculations, are illustrated in Appendices 2-34(K.1) and 2-34(K.2).

b. Fillets & Runouts

This price adjustment procedure does not apply to fillets, bridge runouts, or other hand-worked areas outside of the normal paver lane width.

c. Base & Intermediate Courses

The price adjustment percentages shall be reduced as indicated in Appendices 2-34(K.1) and 2-34(K.2) for all base or intermediate courses, except when such mixture is specified and used as the surface course.

d. Procedure for Determination of Price Adjusted Quantities

The segregation case examples shown in Appendices 2-34(K.1) and 2.34(K.2) illustrate a concept that may be used to define the severity of segregation and appropriate price adjustment factor. It is not required, however, to physically measure each area of segregation to determine a quantity of HMA mixture that is subject to price adjustment. The intent is to define the quantity subject to price adjustment by identifying the number of truckloads in which segregated areas are evident. This obviously takes some judgment to decide how large or severe an area must be before it is price adjusted. The 1 square meter (sq. yard) area shown in examples is a "rule-of-thumb." Most importantly, segregated areas that exhibit an obvious concentration of coarse aggregate resulting in a nonuniform open texture should be price adjusted.

Whenever segregation occurs is observed, the contractor shall be advised immediately and the inspector must document the deficiency with a Noncompliance Notice. The notice should reference the applicable specification and indicate the project engineer will review the work to determine the acceptability of the work. It is recommended that a Noncompliance Notice be issued when segregation is initially observed with final evaluation and price adjustment determined later but prior to project acceptance.

Timeliness is important for two reasons. First, the contractor must take corrective action immediately. Failure to do so should result in suspension of work. Secondly, early identification of unacceptable work allows for resolution of any disputes before there is an "implied" acceptance. Construction Manual 1.12 discusses the enhancement of working relationships by timely notification of unacceptable work.

For streak type segregation, it will be necessary to identify and tabulate the location and length of the segregated streak areas subject to price adjustment and base the price adjustment on the mix quantity within the beginning and ending station limits of the streaks.

Normally this procedure should be repeated for each day from header to header on the day following placement. Each day's run can be tabulated showing a summary of affected Megagrams (tons) of HMA mixture subject to price adjustment.

5. Filler/Bitumen Ratio

For Marshall mixes, the filler/bitumen ratio is determined by dividing the percentage of cold feed material passing the 75 µm (#200) sieve by the total percentage of asphalt binder used, as determined by tank stick or by actual mass (weight) of asphalt binder used. For Gyratory mixes, the filler/bitumen ratio is determined by dividing the cold feed material passing the 75 µm (#200) sieve by the “effective” percentage of asphalt binder used, which takes into account asphalt binder absorbed by the aggregate. See Materials I.M. 501 for additional information, including applicable equations and example calculations.

For recycled mixes, the percentage of asphalt binder is to be determined by addition of percent by tank-stick plus percent in salvaged material as set by job mix (% intended less additional).

The determination for compliance with the specification shall be made for periods not exceeding one day in length. The average of all tests for the lot shall be used to determine the filler/bitumen ratio.

When the filler/bitumen ratio for an HMA mixture exceeds the maximum established by specification for that material, the affected material will be considered noncomplying and subject to price adjustment.

The adjustment schedules in Appendix 2-34(J) are to be used as a guide for price adjustment of the quantity of material affected. The adjustment is applied to the HMA mixture only.

The above schedules are to be applied in lieu of the 75 µm (#200) sieve adjustment for excess or lack of fines listed under Gradation.

6. Field Density

Compaction requirements and price adjustments for noncomplying field density are covered in the current specifications for Hot Mix Asphalt Mixtures. The price adjustment is applied to the unit price for HMA mixture only.

H. Adjustments for Other Contract Administration Issues

Price adjustments for noncomplying work are occasionally appropriate when the issue relates to other incidental items in the contract documents. Price adjustments shall not be considered unless there is willful or repeated reoccurrences indicating lack of due consideration on the contractor's part. In such cases, the following will apply:
• Provide a clear and concise notification to all parties involved with the incident. (This could be a verbal notification or a written noncompliance without price adjustment.)
• Subsequent violations would result in additional noncompliances and could be reason for price adjustments starting at $100, then $250, $500 etc. (progressively doubling the amount of each following violation).

NOTE: It is NOT intended that minor deficiencies be price adjusted if corrected in a timely manner. Situations and circumstances will dictate how this portion should be applied.

I. Steel H-Pile Weight Deficiency

Materials I.M. 467 specifies a mass tolerance of 2.5 percent on steel H-pile weight deficiency. Steel H-pile that are deficient by more than 2.5 percent of theoretical weight should not be accepted for incorporation into the work except when:
• The need for the steel H-pile is immediate and considered critical by the project engineer.
• Replacement of steel H-pile is not reasonably possible due to short supply and availability.

In the above cases, the project engineer may decide to approve the use of deficient steel H-pile and apply a price adjustment in contract unit price for the material as prescribed by “Steel H-Pile Weight Deficiency Price Adjustments” in Appendix 2-34(L).

The specification for Fuel Adjustment, Section 2103 of the Standard Specifications, applies to a contract only when specified in the Proposal with the appropriate note. When specified, all categories (i.e. Roadway & Borrow, Unsuitable, Waste, Channel, etc.) of the following items are subject to fuel adjustment:
• Class 10, 12, & 13 excavation
• Select Backfill
• Topsoil
• Embankment-in-place

The Current Price Index (CPI) will be printed in the Office of Contract's Weekly Letting Report. The Letting Reports list CPI's for several past months. The Base Price Index (BPI) for fuel adjustment calculations will be the CPI listed for the month prior to the letting date of the contract.

Fuel Adjustment Calculation
The fuel adjustment calculation is dependent on the contract's letting date.

• For contracts let prior to April 15, 2003 - based on the first 5% of adjustment (Form 105)
• For contracts let on or after April 15, 2003 but prior to October 18, 2005 - based on the first 50% of adjustment (Form 105Apr03)
• For contracts let on or after October 18, 2005 - based on the first $0.15 of adjustment (Form 105Oct05)

Standardized Fuel Adjustment work sheets (Form 105) and are available in electronic format under the “Inspection Tools” tab on the Office of Construction’s “Contract Administration” wepage: http://www.iowadot.gov/construction/contract_admin.html on the Field Inspection Worksheet webpage.
English Units - http://www.dot.state.ia.us/construction/english_inspection_worksheets.htm
Metric Units - http://www.dot.state.ia.us/construction/metric_inspection_worksheets.htm

Form 105 is usable as either a preprinted form for manual usage or as EXCEL applications. Only raw data inputs are required for those who choose to utilize the EXCEL spreadsheets. Once raw data is entered, the computer calculates adjusted fuel payment from formulas and the user can print a completed monthly adjustment report. Refer to Appendix 2-35 for a completed adjustment worksheet using English units.

Payment for fuel adjustments is to be calculated at the end of each month for all qualifying work accomplished that month.

For contracts let prior to October 18, 2005, the project engineer will determine quantities of material (either excavated or placed) during the month and calculate applicable fuel adjustment(s).

For contracts let on or after October 18, 2005, the contractor shall provide to the Engineer, on a monthly basis, a spreadsheet with quantities and the calculated amount of fuel adjustment.

Instructions for Fuel Adjustment Calculation Spreadsheet (Form 105Oct05)
(Following instruction also available at http://www.dot.state.ia.us/construction/fuel_adj.htm) http://www.iowadot.gov/construction/contract_admin/fuel_adj.html)

1. Download the appropriate spreadsheet (English or Metric units) and save file to user's computer.
2. Complete contract information in header of spreadsheet
3. Obtain BPI, from the Weekly Letting Report by selecting Price Index for month previous to month of the letting. (For example: Letting Date is October 18, select CPI for September)
4. Enter the BPI in the designated space (Cell K5-English or Cell J5-Metric). Form M105 will convert the BPI to the metric equivalent ($/GAL to $/Liter).
5. Enter the contract quantity of the items in the designated rows in the "Estimated Project Quantities". Other items included in the contract, but not listed, shall be added.
6. Obtain the Current Price Index (CPI) for a month from the Weekly Letting Report
7. Enter the CPI in the column "CPI" for the designated month. Form M105 will convert the CPI to the metric equivalent ($/GAL to $/Liter).
8. Enter the quantities that have been hauled in the appropriate item columns and month row. For example, Selected Backfill and Class 10 Excavation were hauled in June. In the June row, the Selected Backfill quantity is entered in column 1 and Class 10 Excavation quantity in column 3. The total quantity for the month will be automatically computed and shown in the column labeled "Total CY" (or "Total M ³").
9. The fuel adjustment amount for the month will be automatically computed and shown in the column "NFA" (Net Fuel Adjustment).
10. Submit a copy of the completed form to the Project Engineer. Payment or credit will be made by processing a Contract Modification. The form shall be completed and submitted on a monthly basis. The monthly quantities shall be added to the previous month's spreadsheet.
11. The Contractor and Project Engineer shall agree upon the frequency of payment or credit.

Fuel Adjustment Payment
Payment shall be by a Change Order using the item numbers of 6200-500171 (metric) and 6200-5000171 (English). With the contractor's approval, one Change Order may be executed at the end of the project or at intervals agreeable to both the project engineer and the contractor. Regardless of payment intervals, calculations on Form 105 shall be made at the end of each month with a copy forwarded to the contractor for their files.