VDOT Issues Memorandum for Steel Escalation Price Adjustments

The Department has released a memorandum outlining requirements for pay adjustments related to the steep escalation spike of raw steel material costs experienced earlier this year. The adjustment is unlike the existing steel escalation specification as it does not depend on indexes to determine the price adjustment but rather relies on actual invoiced costs from the fabricator’s steel mill supplier.

Projects that purchased/paid for steel materials during the window from January 1, 2022 through July are eligible for the adjustment regardless of contract execution date.

VTCA has been actively engaged with VDOT encouraging their participation in the unprecedented cost escalation experienced by many of our members and continues regular dialogue with the Department to identify other commodities beyond those covered in this memorandum that warrant similar consideration.

The Department intends to address industry questions as the memorandum is widely distributed through either a FAQ document or virtual meeting as needed. If you have specific questions please send them to tom@vtca.org.