About the HQ Escalation Index Form
Use this form to set up state-defined indexes for oil price escalation/de-escalation.
Price indexes are used to track pricing fluctuations for the oil component of asphalt mixes over the life of a contract/job, thus helping to minimize cost risks.
Price indexes are set up by country and state and are not company-specific; therefore, if the same index applies to multiple companies, you must set up the finish material/component material combination as applicable for each company’s assigned material group (Material tab).
Once set up here, price indexes are applied to state jobs/projects (via JC Jobs, PM Projects, or MS Quotes) or customer jobs (MS Quotes) to track monthly increases/decreases in pricing. Using the MS Oil Price Escalation report, you can compare system data with state-supplied documents (e.g. change orders) to identify amounts owed to, or from, the state.
The Monthly Index tab allows you to set up the state-defined escalation pricing for the component material (e.g. the virgin oil used in the asphalt mix). You specify the date ranges to which pricing applies (e.g. weekly, monthly, etc.), the state-defined English/Metric prices and pricing factor (i.e. how much pricing must increase/decrease before an adjustment is applied), and the minimum days/amounts.
The Material tab allows you to set up the materials to which time-based escalation applies; that is, the finished good material (representing the mix design formula) and the component material (to which price escalation applies). A material/component combination may be set up multiple times for a single country/state/index (i.e. multiple companies use the same index), as long as the material group differs.