Item rate contract Sample Clauses
Item rate contract. In this type of contracts the contractors are required to quote rates for individual items of work on the basis of schedule of quantities given by the department. This schedule indicates full nomenclature of the items as per sanctioned estimate and estimated quantities. This system is followed in central public works department (CPWD) and railway department.
Item rate contract. Here the contractor gets the payment depending on the rate at which he has quoted every item of the work. • It was rather difficult to scrutinise the tenders submitted by various bidders and the system was hence modified and now the department quotes the items of work along with their quantities and the bidders are required to quote the percentages at which he can execute the various items. • Easy for contract selection. • Early start is possible. • Saves the heavy cost of preparing many bills of quantities by the contractor. • Fair basis for competition. • Lower risk for contractor. • Final cost not known from start (BOQ only is estimated) • Staff needed to measure the finished quantities and report on the units not completed. • Unit price sometime tend to draw unbalanced bid.