Resurface Asphalt Driveway for $1.67/SF - Fair & Reasonable?

An asphalt paver in the Northern VA area just gave me a price quote of $5,495 for applying a 2 1/2 inch layer of state approved asphalt on my 20-year old driveway with 3,285 suare feet, and I'm wondering if this price is fair. That works out to about $1.67 per square foot. Here is his complete proposal:
1. trim grass back along edges 2. remove loose broken asphalt as needed and patch, roll & compact (60 sf) 3. cut back existing asphalt at transition points, etc. 4. clean complete surface of dirt and debris 5. apply tack coat to bond new asphalt with old 6. even up low and uneven areas (440 sf) 7. resurface with 2 1/2 inches of SM-9.5A V-DOT state approved asphalt machine installed with hand finished edges 8. rolled and compacted with static rollers for maximum compaction 9. handstamp edges at approx. 45 degree angle for extra support 10. widen at apron on both sides (60 sf)
The quote seems high to me, but with today's soaring oil prices, maybe the asphalt has just gone up that much. I was budgeting for a quote at about $3,500 only.
Thanks for any feedback.
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On Thu, 1 May 2008 05:21:15 -0700 (PDT), "franzen snipped-for-privacy@yahoo.com"

Sounds like a lot, but I haven't priced asphalt lately. Just for fun, see what a concrete driveway would cost. Concrete is a step-up from asphalt and would increase your property value. Also, for something that costly, get 3 or 4 written quotes (quotes are free!). With several quotes you will know a fair price and then you have a comparison. You may save more than you think. Pay after the work is completed.
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Phisherman wrote:

2.5 inches over 3,285 ft2 is 684 ft3, or 48.9 tons of asphalt. Just got a quote for road paving at $67/ton which says you're looking at $3,278 in asphalt alone. (This is up from $54/ton last year.) Considering the additional prep work, labor, OH, and profit I don't think the price is wildly out of line.
Boden
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