Measurement Contracts in Construction
Measurement contracts in construction are agreements between a client and contractor that outline the scope of work to be done on a construction project. The focus is mainly on the quantities of materials and labor required to complete the project, which are then used to calculate the cost of the project. This type of contract is often used for projects where the scope of work is not well defined, or where the exact cost cannot be determined upfront. The payment is typically based on the measurements of the actual work completed, rather than a lump sum price.
Examples of construction projects that might use a measurement contract include:
- Building a new home or commercial building, where the exact specifications and materials required are not known until the work is underway.
- Renovating an existing building, where the scope of work and the materials required are often not fully understood until the work has started.
- Landscaping projects, such as creating a garden or installing a new lawn, where the quantities of materials and labor required are difficult to estimate until the work is underway.
- Road construction projects, where the exact quantities of materials and labor required are often not known until the work is underway and the exact measurements of the road and surrounding area can be taken.
These are just a few examples, but measurement contracts can be used in many different types of construction projects where the scope of work and cost are not fully known or understood in advance.
A simplified example of a measurement contract for a construction project:
- Scope of Work: The contractor will construct a new two-story building, including all necessary foundations, walls, roofs, windows, doors, electrical and plumbing systems, and any other required materials and labor.
- Measurement and Payment: The contractor will be paid based on the actual measurements of the work completed, using standard industry measurement practices. The cost of materials will be calculated based on actual quantities used. Labor costs will be calculated based on the number of hours worked and the prevailing wage rates in the area.
- Progress Payments: Progress payments will be made based on the completion of specified stages of the work, as agreed between the client and contractor.
- Changes to the Scope of Work: Any changes to the scope of work must be agreed upon in writing between the client and contractor and may result in changes to the payment schedule.
- Completion Date: The project will be considered complete when all work has been completed to the satisfaction of the client and any necessary inspections have been performed.
- Dispute Resolution: Any disputes arising from the contract will be resolved through mediation or arbitration, as agreed between the client and contractor.
This is just one example of a measurement contract, and the specific terms will vary depending on the nature of the construction project and the agreement between the client and contractor.