Price Adjustment Clauses
A price adjustment clause (PAC) is a contractual mechanism that allows a contractor to be at least partially protected against material or fuel price increases that may occur between the contract award and the execution of the work. According to a 2011 study, 47 out of 50 state departments of transportation (DOTs) use price adjustment clauses. PACs have the advantages of decreased bid prices, more bidders and fewer bid retractions, better market stability, better reliability in the supply chain, and more consistent contractor profit margins. Since the Texas Department of Transportation (TxDOT) does not currently use PACs and there are some risks associated with them, researchers examined the feasibility of establishing PACs in Texas.
- Record URL:
-
- Summary URL:
-
Corporate Authors:
Texas A&M Transportation Institute
Texas A&M University System
3135 TAMU
College Station, TX United States 77843-3135Texas Department of Transportation
Research and Technology Implementation Office, P.O. Box 5080
Austin, TX United States 78763-5080Federal Highway Administration
1200 New Jersey Avenue, SE
Washington, DC United States 20590 -
Authors:
- Newcomb, David
- Lenz, Russel
- Epps, Jon
- Publication Date: 2013
Language
- English
Media Info
- Media Type: Web
- Edition: Project Summary
- Features: Figures;
- Pagination: 2p
Subject/Index Terms
- TRT Terms: Construction projects; Contract administration; Contractors; Contracts; Costs; Prices
- Identifier Terms: Texas Department of Transportation
- Subject Areas: Administration and Management; Finance; Highways; I10: Economics and Administration;
Filing Info
- Accession Number: 01481627
- Record Type: Publication
- Report/Paper Numbers: 0-6799
- Files: TRIS, ATRI, USDOT, STATEDOT
- Created Date: May 13 2013 12:05PM