Measurement contracts (sometimes called ‘re-measurement’ or ‘measure and value’ contracts) can be used in situations where the design (or type of works) can be described in reasonable detail, but the amount cannot. For example, excavation works where the quantity of excavation required is difficult to assess until after the works have begun, or refurbishment projects where there are some uncertainties about the works that will be required. A measurement contract might also be appropriate on projects where the design has not been completed in sufficient detail for bills of quantities to be produced.
It should be possible to describe the works in sufficient detail to determine a programme and to obtain rates from tenderers. Generally tenderers rates will be based on drawings and approximate quantities.
The actual contract sum (sometimes called the 'ascertained final sum') cannot be determined when the contract is entered into, but is calculated on completion, based on ‘re-measurement’ of the actual work carried out and the rates tendered.
Measurement contracts can allow an early start on site, before design is complete, and they can allow changes to be made to the works relatively easily. However, there is inevitably some risk for the client as the cost of the works is not known. In effect, the client is taking the risk for any ‘unknowns’, and whilst this can result in competitive prices from contractors, the level of uncertainty for the client means that measurement contracts are rare other than on civil engineering projects.
See also: Measured term contract.
 Related articles on Designing Buildings Wiki
Agreement announced for BSRIA to supply all on-site acoustic testing to NHBC clients.
If you are starting or returning to university for the new academic year, why not check out our wide range of resources?
From April 2017, non-households in England and Wales can choose their water supplier. What will this mean for the water sector?
An introduction to the historical development and methodology of value engineering.
Charles Drake’s concrete building apparatus met fierce resistance from the mainstream architectural establishment.
Recently given UNESCO World Heritage Site listing, Le Corbusier's modernist masterpiece Villa Savoye.
After IFA Messe 2016, what is the view on smart homes from Germany?
A snow-covered mountain peak designed by Oslo-based Reiulf Ramstad studio.
BSRIA welcome the Hinkley decision, but express concern about investment in renewable technologies.
U+I win £850 million development project adjacent to Piccadilly station in Manchester.
60% of under 35's haven't heard of Auschwitz. How can we conserve the 20th century’s most dreadful heritage?
For more than a hundred years, former railway carriages have found a new life off the rails.
Thomas Heatherwick reveals designs for Vessel, an intricate web of staircases.
For more news, go to the home page.