Last edited 24 Jan 2023

The difference between admeasurement and construction management contracts

The main differences between an admeasurement contract and construction management, are that the former is primarily for civil engineering projects. In both approaches a level of price uncertainty exists, in the latter though this price uncertainty can be clarified once the design is finalised and all contracts established, whereas the former is more open to the risk of cost quantities of work carried out differing from the quantities originally anticipated.

Admeasurement contracts are commonly used on civil engineering projects. Rates are provided in the contractor’s tender, either as part of the priced bill of quantities, or within a schedule of rates. Then the actual quantities of work carried out are measured and the rates are applied to those quantities. As a result, the quantities paid for may vary from the original estimate. The term ‘admeasurement’ is thought to have originated in the ICE Conditions of Contract measurement clauses, where it referred to establishing the difference between the final quantity of work carried out and the quantity originally anticipated.

Construction management is a procurement route in which the works are constructed by a number of different trade contractors, these trade contractors are contracted to the client but managed by a construction manager. The construction manager acts as an agent for the client, administering and co-ordinating the works contracts. A construction manager is generally appointed early in the design process so that their experience can be used to improve the buildability and packaging of proposals as they develop. Appointing a construction manager enables some trade packages to be tendered earlier than others, and sometimes, even before the design is completed. This can shorten the time taken to complete the project, however, it means that there will be price uncertainty until the design is complete and all contracts have been let.

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