Asphalt price escalator

Definition

A bid clause that moves the price with a published liquid asphalt index between award and paving.

Why It Matters

Liquid asphalt is the largest input and it moves month to month, so a fixed-price job bid in March and paved in August can lose its whole margin without anyone running the crew badly. Public work usually carries an escalator and private work usually does not. Ask what share of the backlog is escalated, then reprice the rest at today's index and see what is left of the profit the seller is charging for.