7-27-06 The rising price of oil is affecting prices away from the fuel pump. Cities, counties and state budgets are taking a hit right underneath your feet.
It takes 800 tons of asphalt to pave a mile of road. In the last six to eight months, the price of asphalt went from about $35 a ton to $65.
Bids on most of the projects under construction now were set months ago. Lucky for the city, once a contractor agrees on a price, it's set in stone, and it's up to the companies to gauge the cost of materials.
With the market fluctuating like it is, you can say that's a gamble.
Many of the state road contracts have a clause that compensates the contractor for the fluctuating price of materials. City leaders say they don't think they'll have to resort to that.