Measurement contract
Measurement contracts (sometimes called ‘re-measurement’ or ‘measure and value’ contracts) can be used in situations where the design (or type of works) can be described in reasonable detail, but the amount cannot.
For example, excavation works where the quantity of excavation required is difficult to assess until after the works have begun, or refurbishment projects where there are some uncertainties about the works that will be required. A measurement contract might also be appropriate on projects where the design has not been completed in sufficient detail for bills of quantities to be produced.
It should be possible to describe the works in sufficient detail to determine a programme and to obtain rates from tenderers. Generally, tenderers rates will be based on drawings and approximate quantities.
The actual contract sum (sometimes called the 'ascertained final sum') cannot be determined when the contract is entered into, but is calculated on completion, based on ‘re-measurement’ of the actual work carried out and the rates tendered.
Measurement contracts can allow an early start on site, before design is complete, and they can allow changes to be made to the works relatively easily. However, there is inevitably some risk for the client as the cost of the works is not known. In effect, the client is taking the risk for any ‘unknowns’, and whilst this can result in competitive prices from contractors, the level of uncertainty for the client means that measurement contracts are rare other than on civil engineering projects.
See also: Measured term contract.
[edit] Related articles on Designing Buildings
Featured articles and news
Local leaders gain new powers to support local high streets
High Street Rental Auctions to be introduced from December.
Infrastructure sector posts second gain for October
With a boost for housebuilder and commercial developer contract awards.
Sustainable construction design teams survey
Shaping the Future of Sustainable Design: Your Voice Matters.
COP29; impacts of construction and updates
Amid criticism, open letters and calls for reform.
The properties of conservation rooflights
Things to consider when choosing the right product.
Adapting to meet changing needs.
London Build: A festival of construction
Co-located with the London Build Fire & Security Expo.
Tasked with locating groups of 10,000 homes with opportunity.
Delivering radical reform in the UK energy market
What are the benefits, barriers and underlying principles.
Information Management Initiative IMI
Building sector-transforming capabilities in emerging technologies.
Recent study of UK households reveals chilling home truths
Poor insulation, EPC knowledge and lack of understanding as to what retrofit might offer.
Embodied Carbon in the Built Environment
Overview, regulations, detail calculations and much more.
Why the construction sector must embrace workplace mental health support
Let’s talk; more importantly now, than ever.
Ensuring the trustworthiness of AI systems
A key growth area, including impacts for construction.
Foundations for the Future: A new model for social housing
To create a social housing pipeline, that reduces the need for continuous government funding.
Mutual Investment Models or MIMs
PPP or PFI, enhanced for public interest by the Welsh Government.
Key points and relevance to construction of meeting, due to reconvene.
Comments