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Fuel Clauses in Transportation Contracts

With the recent surge in the cost of fuel, school bus contractors nationwide have been closely monitoring the price at the pump over the last few months. When negotiating or renewing a transportation contract, fuel is typically a topic of significant dialog between the parties. School transportation contracts will normally specify who pays for fuel, but transportation contractors should also consider adding a fuel clause to address future fuel cost volatility.
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5/6/2022| Reference Number : 259.114.2| Legal, School Bus, Insurance/Risk Management, Legislative/Regulatory | Contract |

Pennsylvania Supreme Court to Decide if Pupil Transportation Contracts Require Pre-Approval by the Department of Education

A pending appeal to the Pennsylvania Supreme Court will challenge existing case law holding that there are no statutory requirements for Department of Education pre-approval of Pupil Transportation Contracts. The case of Bell v. Wilkinsburg School District will be heard in March of this year to decide this important issue. Continue reading for more details.
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Preparing Bids Post-COVID

For many contractors this spring is the first time since the COVID-19 school shutdowns began, that they will be preparing proposals or bids for transportation contracts. This article will discuss different post-COVID considerations and strategies.
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Cost Sharing and Openings Clauses in Transportation Service Agreements

As school transportation contractors enter into bid season, it is in the interest of the contractor to price competitively; however, contractors should be careful to consider the possibility of changes to their operational costs during the term of the contract. Currently, there is much discussion at the state and federal level on laws that could affect costs for transportation contractors, such as laws related to changes in infrastructure and school bus safety equipment. In the event that such c...
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Summer Charters

The end of the school year for students means the beginning of the summer charters season for school bus contractors. Summer camps, church groups, scout groups, and others frequently charter school buses for group trips in the summer. This note will talk about summer charter issues you should consider. But, be aware that all of the issues related to carrying non-student passengers for a fee are far more complex than can be addressed completely in this brief article.
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Legal Focus on Contracts - Fuel Clauses

A fuel clause is language in a contract which allows the contractor and the district to share the risk of steep increases or decreases in fuel prices. The fuel clause is typically put into place for diesel fuel and gasoline, however, if your vehicles are using alternative fuels such as propane or electric, you may also want to consider a fuel clause for these fuels. Most fuel clauses address the risk of rising fuel costs. But, recent history has seen both increases and decreases in fuel costs. T...
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Legal Focus on Contracts-Indemnity Clauses

“Hold Harmless”, “Defend”, “Indemnify” … what does it all really mean? This article explains contractual indemnity and will help you understand indemnity clauses. That is, who will be responsible for damages or injuries that may arise from performing the work of the contract?
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