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Measure And Pay Contract

V
Venuri Lakshani

This document discusses measure and pay contracts, also known as re-measurement contracts. With this type of contract, the contractor quotes unit prices for items in the bill of quantities (BOQ) provided by the employer. During construction, the actual quantities of work are measured and valued at the quoted rates for interim payments. After completion, the exact quantities are re-measured and valued at the quoted rates for the final payment. While the total cost is not known until completion, this contract allows for adjustments to scope and quantities and requires less design definition upfront than a lump sum contract. It is suitable for competitive bidding but requires accurate measurement and reporting of completed work units.

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Measure And Pay Contract
Procurement Strategies Traditional Contract Modern or Design & Build Contract Management Contract Collaborative Contract
Traditional Contract Lump sum contract Measurement contract Cost plus contract
Measure And Pay Contract Called as, Re-measurement contract Unit price contract Measure and Value contract Measurement contract
Measure And Pay Contract Re-measurement contracts are seldom used for an entire major construction project, but they are frequently used for agreements with sub-contractors
Measure And Pay Contract Contains a BOQ and Design of the project provided by the employer or his consultants The contractor will quote against each BOQ item Enter a unit rate or unit price to build up the total contract price on basis of those BOQ quantities At completion of contract , the exact quantity of works finally executed under each BOQ item will be again re- measured
Measure And Pay Contract During the construction period , the actual quantity of works executed under each BOQ item will be jointly measured And valued at the quoted rate for interim payment purpose After re-measure valued at the quoted rate to evaluate the final account
Measure And Pay Contract In variation or additional works that are without basis of BOQ rate(s) , the contractor can build up new rates or SRS for those works for valuation
Measure And Pay Contract This type of contract is fair with the employer ( Client ) at risk for total quantities
Requirements; Experience in developing bills of quantities Payment terms properly tied to measured work completion Quantity sensitive analysis of unit prices to evaluate total bid price for potential quantity variations
Requirements; Adequate breakdown and definition of work units Good quantity surveying and reporting system Sufficient design definition to estimate quantities of units Owner-furnished drawings and materials must arrive on time
Advantages Complete design definition not required at tender Typical drawings can be used for bidding Suitable for competitive bidding Easy for contractor selection Early project start possible Scope and quantities easily adjustable
Disadvantages The exact final price of the project is not known to the owner until the completion of the project More staff maybe needed to measure, control, and report on units completed Re-measurement contracts tend to draw unbalanced bidding
In comparing with lump-sum contract, - Changes in contract documents can be made easily by the owner - Lower risk for contractor.
Measure And Pay Contract
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Measure And Pay Contract

  • 2. Procurement Strategies Traditional Contract Modern or Design & Build Contract Management Contract Collaborative Contract
  • 3. Traditional Contract Lump sum contract Measurement contract Cost plus contract
  • 4. Measure And Pay Contract Called as, Re-measurement contract Unit price contract Measure and Value contract Measurement contract
  • 5. Measure And Pay Contract Re-measurement contracts are seldom used for an entire major construction project, but they are frequently used for agreements with sub-contractors
  • 6. Measure And Pay Contract Contains a BOQ and Design of the project provided by the employer or his consultants The contractor will quote against each BOQ item Enter a unit rate or unit price to build up the total contract price on basis of those BOQ quantities At completion of contract , the exact quantity of works finally executed under each BOQ item will be again re- measured
  • 7. Measure And Pay Contract During the construction period , the actual quantity of works executed under each BOQ item will be jointly measured And valued at the quoted rate for interim payment purpose After re-measure valued at the quoted rate to evaluate the final account
  • 8. Measure And Pay Contract In variation or additional works that are without basis of BOQ rate(s) , the contractor can build up new rates or SRS for those works for valuation
  • 9. Measure And Pay Contract This type of contract is fair with the employer ( Client ) at risk for total quantities
  • 10. Requirements; Experience in developing bills of quantities Payment terms properly tied to measured work completion Quantity sensitive analysis of unit prices to evaluate total bid price for potential quantity variations
  • 11. Requirements; Adequate breakdown and definition of work units Good quantity surveying and reporting system Sufficient design definition to estimate quantities of units Owner-furnished drawings and materials must arrive on time
  • 12. Advantages Complete design definition not required at tender Typical drawings can be used for bidding Suitable for competitive bidding Easy for contractor selection Early project start possible Scope and quantities easily adjustable
  • 13. Disadvantages The exact final price of the project is not known to the owner until the completion of the project More staff maybe needed to measure, control, and report on units completed Re-measurement contracts tend to draw unbalanced bidding
  • 14. In comparing with lump-sum contract, - Changes in contract documents can be made easily by the owner - Lower risk for contractor.