Remeasurement contract meaning

Construction contract pricing structures This Practice Note contrasts the pricing models most often used on construction projects, considering lump sum, remeasurement, prime cost and target cost contracts. Lump sum Also referred to as: Fixed price In brief: the contract sum is settled before any works begin. Features At the outset, employer and contractor agree the total amount payable for the project, prior to commencement. The price is not remeasured as the works proceed, so adequate tender information is essential for accurate pricing. Where the contractor is not responsible for design, pricing is typically based on drawings and: a bill of quantities prepared by a quantity surveyor in line with a published standard method of measurement, listing the work items, labour and materials needed to complete the works. During tendering, the contractor inserts rates against each item in the bills of quantities, and the product of the quantities...

This Practice Note reviews how price is addressed in the 1999 Red, Yellow and Silver Books, together with the Gold Book 2008 and the Pink Book 2010 editions. For guidance on pricing within the 2017 Red, Yellow and Silver Books, refer to Practice Note: FIDIC contracts 2017—price. Price sits at the heart of every construction agreement. FIDIC’s standard forms adopt two distinct approaches to setting the price. The Red and Pink Books operate as remeasurement arrangements, while the Yellow, Silver and Gold Books use lump sum fixed pricing across the works. Remeasurement contracts An opening valuation of the works is produced by quantifying each item of work, which will be set out in a document referred to as a bill of quantities, and applying the agreed rate to that item. This preliminary total is then recalculated at project close, once every quantity has been remeasured, to determine the contract price with accuracy. Payment to the contractor is usually made each month as interim portions of the contract price,...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Referral Notice After a Notice of Adjudication is issued and an adjudicator is appointed, the dispute must be put before the adjudicator in a formal manner. The Referral Notice is the written document that submits the dispute to the adjudicator. See Practice Note: Adjudication—the Referral Notice and Precedent: Referral Notice for an adjudication. Referring party The party initiating the adjudication of the dispute, ie the claimant. Rejoinder The responding party’s second submission in an adjudication, provided in answer to the Reply from the referring party. Relevant Event Under the JCT form of contract, an occurrence that entitles the contractor to an extension of time to finish the works. See Practice Notes: JCT contracts—time and JCT—interpreting the lists of Relevant Events and Relevant Matters...