Construction material prices have been extremely volatile, negatively impacting virtually all projects. Recently, VDOT issued guidance on steel escalation, but for VDOT projects only.

VDOT’s July 27, 2022 memorandum provides that VDOT will consider pay adjustments by change order for the unexpected rise in prices for steel used on projects between January 1, 2022, and August 1, 2022, if that steel was permanently incorporated into a project under VDOT’s approved design.

Supporting documentation must be submitted to the Engineer on the project by October 1, 2022. Documentation must consist of material price quotes, bid papers, purchase orders, and other similar documentation that reflects the anticipated price of steel at the time of the bid and the difference between the anticipated escalated price and the actual FOB price paid. Importantly, the contractor must also submit with its documentation a signed certification that the documentation is true and accurate to the best of their knowledge. Failure to submit the required documentation will not only result in ineligibility for the price adjustment but will also constitute a waiver and release of any claim against VDOT for such adjustment.