[First Reprint]

ASSEMBLY, No. 436

STATE OF NEW JERSEY

213th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2008 SESSION

 


 

Sponsored by:

Assemblyman JERRY GREEN

District 22 (Middlesex, Somerset and Union)

Assemblyman JOHN S. WISNIEWSKI

District 19 (Middlesex)

 

Co-Sponsored by:

Assemblyman Conners

 

 

 

 

SYNOPSIS

     Permits price adjustments in local public contracts for asphalt cement and fuel.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Housing and Local Government Committee on May 7, 2009, with amendments.

  


An Act concerning certain price adjustments in local public contracts and supplementing P.L.1971, c.198 (C.40A:11-1 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     11.   For the purposes of this act:

     "Asphalt Price Index" means the Asphalt Price Index as determined and published by the New Jersey Department of Transportation.

     "Basic Asphalt Price Index" means the Basic Asphalt Price Index as published by the New Jersey Department of Transportation in its "Standard Specifications for Road and Bridge Construction," as revised by the "Standard Inputs" periodically issued by the New Jersey Department of Transportation.

     "Basic Fuel Price Index" means the Basic Fuel Price Index as published by the New Jersey Department of Transportation in its "Standard Specifications for Road and Bridge Construction," as revised by the "Standard Inputs" periodically issued by the New Jersey Department of Transportation.

     "Department" means the New Jersey Department of  Transportation.

     "Fuel Price Index" means the Fuel Price Index as determined and published by the New Jersey Department of Transportation.

     "Pay Item" means a specifically described item of work for which the bidder provides a per unit or lump sum price in a bid specification.1

 

     1[1.] 2.1  a.  Any 1[contract entered into] bid specification prepared1 pursuant to section 16 of P.L.1971, c.198 (C.40A:11-16) 1[, which] that1 includes the use of 11,000 or more tons of hot mix1 asphalt, shall include 1[an adjustment clause for] a pay item for any asphalt price adjustment reflecting1 changes in the cost of asphalt cement.  1[The adjustment clause shall be expressed by the following formula: A=(MA-BA) x T, where:

 

     A= Asphalt Price Adjustment;

     MA= Monthly Asphalt Price Index, determined by the New Jersey   Department of Transportation each month;

     BA= Basic Asphalt Price Index in effect at the time of the bid, as      published by the New Jersey Department of Transportation in its

     "Standard Specifications for Road and Bridge Construction," as
     revised by the "Standard Inputs" periodically issued by the

     department; and

     T= Tons of New Asphalt Binder, determined by multiplying the

     percentage of new asphalt binder in the approved job mix formula

     by the weight of hot mix asphalt.]1

 

     b.    1[Adjustments made in accordance with the provisions of this section shall be paid on a lump sum basis and shall be made monthly.] Any bid specification prepared pursuant to section 16 of P.L.1971, c.198 (C.40A:11-16) that includes the use of less than 1,000 tons of hot mix asphalt, shall include a pay item for an asphalt price adjustment for any quantity of hot mix asphalt exceeding 1,000 tons that was used in the work in the event that performance of the work, including change orders, requires more than 1,000 tons of hot mix asphalt.

     c.     The asphalt price adjustment shall be calculated in accordance with the formula and relevant instructions published in the most recent edition of the New Jersey Department of Transportation Standard Specifications for Road and Bridge Construction as revised by the "Standard Inputs" periodically issued by the department.  All invoices for payment shall be accompanied by the calculation of any asphalt price adjustment and a showing of the current month's Asphalt Price Index, the Basic Asphalt Price Index.1

 

     1[2.] 3.1 a.  Every 1[contract entered into] bid specification prepared1 pursuant to section 16 of P.L.1971, c.198 (C.40A:11-16) 1that has pay items that are eligible for a fuel price adjustment, pursuant to the most recent edition of the New Jersey Department of Transportation Standard Specifications for Road and Bridge Construction,1 shall include a 1[provision] pay item1 for a fuel price adjustment.  1[Fuel eligible for fuel price adjustment shall be the sum of the quantities of the eligible pay items in the contract multiplied by the fuel usage factor, as published by the New Jersey Department of Transportation in its "Standard Specifications for Road and Bridge Construction," as revised by the "Standard Inputs" periodically issued by the Department.  Fuel Price Adjustment shall be determined on a monthly basis by a the formula: F= (MF-BF) x G, where:

 

     F= Fuel Price Adjustment;

     MF= Monthly Fuel Price Index, determined by the New Jersey

     Department of Transportation each month;

     BF= Basic Fuel Price Index in effect at the time of bid, as published by the New Jersey Department of Transportation in its "Standard Specifications for Road and Bridge Construction," as revised by the "Standard Inputs" periodically issued by the Department; and

     G= Gallons of Fuel Available for Price Adjustment.

     b.    Adjustments made in accordance with the provisions of this section shall be paid on a lump sum basis and shall be made monthly.]

 

All invoices for payment shall be accompanied by the calculation of any fuel price adjustment and showing of the monthly Fuel Price Index, the Basic Fuel Price Index.1

 

     1[3.] 4.1 This act shall take effect 1[immediately] on the first day of the fourth month next following the date of enactment1.