Measured term contract
Measured term contracts (such as JCT MTC 2011) are used where the client has a regular programme of works that they would like to be undertaken by a single contractor. They are generally used for minor works or for maintenance work.
The contract will generally define the buildings that will be covered by the works, the term over which works may be required (usually between one and three years), an estimate of the likely total value of the works that will be required over the term and an estimate of the likely size of individual orders.
Appointment is based on an agreed schedule of rates related to the categories of work that are likely to form part of the programme.
When individual works are required, the client issues an instruction (or order) to the contractor which may include a written description of the works, drawings if appropriate and a valuation agreed by the client and contractor.
Payments are then calculated based on an agreed schedule of rates.
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