What is a remeasurement contract?

A remeasurement contract is where the work is measured and valued against agreed rates. There is therefore no agreement as to a lump sum, but there is agreement as to the basis upon which the work will be valued.

What is a lump sum contract with bills of quantities?

Lump sum contracts are contracts where the contract sum is known before work starts on site and the contractor agrees to undertake a defined amount of work for a specific amount. This type of contract is often based on a firm bill(s) of quantities and drawings but can also be common on Design and Build Contracts.

What is a bill of quantities contract?

A Bill of Quantities, as defined by the Business Dictionary, is an itemized list of materials, parts and labour with their costs, required to undertake construction work.

Who is responsible for the bill of quantities?

A bill of quantities (commonly known as BOQ or BQ) is a document prepared by a quantity surveyor or cost consultant to define the quality and quantity of works required to be carried out by the main contractor to complete a project.

What is the difference between fixed and lump sum contract?

Under a lump sum contract, a single ‘lump sum’ price for all the works is agreed before the works begin. It is defined as a fixed price contract, where the contractors agree to execute the work for a stated total sum of money. The contract sum for measurement contracts is not finalised until the project is complete.

Where can I use lump sum contract?

Lump sum contracts are regularly used for a variety of transactions, including construction work, consulting projects, and architectural assignments. A lump sum contract is easy to manage since payment is made only once.

How do you prepare a bill of quantities?

The first step to produce a bill of quantities is to create an excel sheet with the appropriate columns. Columns like the item numbers, description, unit of measurement, amount, the rate for the item, labor, and total cost for the item are the staples.

How do you prepare a bill of quantity?

Drafting Your Bill of Quantities. Set up a spreadsheet for your bill of quantities. Include columns for the item numbers, description, unit of measurement, quantity, rate for the item, labor, and total cost for the item. Your item numbers will be consecutive, starting from 1.

What is an essential term of a contract?

An “essential term” is a legal concept you might hear being thrown around. It’s basically a clause in the contract that contains a key requirement. If one party fails to perform an essential term of the contract, usually this will give the other party the right to terminate the contract.

How are remeasurement contracts used in the construction industry?

The re-measurable/remeasurement contract is the most popular type of contract used in the former construction industry. But even so, large construction companies are using this method to hire subcontractors for tasks such as painting, plastering, etc. In this method, the companies will receive the payment based on actual work.

Which is an example of a measurement contract?

For example, excavation works where the quantity of excavation required is difficult to assess until after the works have begun. The contract sum for measurement contracts is not finalised until the project is complete. At this point it is assessed on based on re-measurement of the actual amount of work carried out.

What’s the difference between a measurement and a lump sum contract?

Difference between lump sum and measurement contracts. Lump sum and measurement are both types construction contracts. Under a lump sum contract, a single ‘lump sum’ price for all the works is agreed before the works begin. It is defined as a fixed price contract, where the contractors agree to execute the work for a stated total sum of money.

What does it mean to have a re measurable contract?

The client is taking the risk of any ‘unknown persons’, and while this may result in competitive prices from contractors. The level of uncertainty for the client means that in addition to civil engineering projects, the re-measurable contracts are extraordinary.