This document discusses measure and pay contracts, also known as re-measurement contracts. With this type of contract, the contractor quotes unit prices for items in the bill of quantities (BOQ) provided by the employer. During construction, the actual quantities of work are measured and valued at the quoted rates for interim payments. After completion, the exact quantities are re-measured and valued at the quoted rates for the final payment. While the total cost is not known until completion, this contract allows for adjustments to scope and quantities and requires less design definition upfront than a lump sum contract. It is suitable for competitive bidding but requires accurate measurement and reporting of completed work units.

1. Measure And Pay
Contract

2. Procurement Strategies
 Traditional Contract
 Modern or Design & Build Contract
 Management Contract
 Collaborative Contract

3. Traditional Contract
• Lump sum contract
• Measurement contract
• Cost plus contract

4. Measure And Pay Contract
Called as,
• Re-measurement contract
• Unit price contract
• Measure and Value contract
• Measurement contract

5. Measure And Pay Contract
Re-measurement contracts are seldom used
for an entire major construction project, but
they are frequently used for agreements with
sub-contractors

6. Measure And Pay Contract
• Contains a BOQ and Design of the project provided by
the employer or his consultants
• The contractor will quote against each BOQ item
• Enter a unit rate or unit price to build up the total
contract price on basis of those BOQ quantities
• At completion of contract , the exact quantity of works
finally executed under each BOQ item will be again re-
measured

7. Measure And Pay Contract
• During the construction period , the actual quantity
of works executed under each BOQ item will be
jointly measured
• And valued at the quoted rate for interim payment
purpose
• After re-measure valued at the quoted rate to
evaluate the final account

8. Measure And Pay Contract
• In variation or additional works that are without
basis of BOQ rate(s) , the contractor can build up
new rates or SRS for those works for valuation

9. Measure And Pay Contract
This type of contract is fair with the employer (
Client ) at risk for total quantities

10. Requirements;
• Experience in developing bills of quantities
• Payment terms properly tied to measured work
completion
• Quantity sensitive analysis of unit prices to
evaluate total bid price for potential quantity
variations

11. Requirements;
• Adequate breakdown and definition of work
units
• Good quantity surveying and reporting system
• Sufficient design definition to estimate
quantities of units
• Owner-furnished drawings and materials must
arrive on time

12. Advantages
• Complete design definition not required at
tender
• “Typical” drawings can be used for bidding
• Suitable for competitive bidding
• Easy for contractor selection
• Early project start possible
• Scope and quantities easily adjustable

13. Disadvantages
• The exact final price of the project is not
known to the owner until the completion of
the project
• More staff maybe needed to measure,
control, and report on units completed
• Re-measurement contracts tend to draw
unbalanced bidding

14. In comparing with lump-sum contract,
- Changes in contract documents can be made
easily by the owner
- Lower risk for contractor.

16. Thank you