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Tuesday, 9 January 2018

Item Rate Contract

Item rate contract also called a schedule contract, in this contract, the contractor undertakes the execution of work on an item rate basis. The amount to be received by the contractor, depends upon the quantities of various items of work actually executed.

The payment to the contractor is made on the basis of detailed measurements of different items of work actually done by him.

The item rate contract is most commonly used for all types of engineering works financed by public or government bodies. This type of contract is suitable for works which can be split into various items and quantities under each item can be estimated with accuracy.

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