A schedule of rates is a list of work items with a unit and a price for each, such as £ per square metre, per metre run or per hour. It has no quantities. The contractor is paid by measuring the work actually done and multiplying by the rates. It is common on term maintenance, repairs, frameworks and as a pricing basis for variations.
Worked example
A housing association appoints a contractor for responsive repairs, with a schedule of rates. In one month the contractor completes these jobs.
| Item | Qty | Rate £ | Value £ |
|---|---|---|---|
| Renew internal door, supply and fit | 14 nr | 185.00 | 2,590.00 |
| Replaster wall, per square metre | 62 m2 | 28.50 | 1,767.00 |
| Renew kitchen worktop, per metre | 18 m | 96.00 | 1,728.00 |
| Total for the month | 6,085.00 |
The Client pays £6,085 for what was actually done. A different month will give a different total.
Schedules of rates in the cost report
With a schedule of rates there is no fixed contract sum to measure against, so the budget is an estimate of volume multiplied by rates.
Control depends on two things. Measure and agree quantities promptly, so value is recognised in the right month. And compare the rate with your actual cost per unit, since a low-priced rate can sit in the schedule for years while labour and materials rise. Track margin per rate, not just per job.
The rates may also apply to variations on a Lump Sum Contract, which keeps pricing consistent. In that case, record which rate or rates were applied in the Variation, so it can be checked later.
Schedule of rates and remeasurement
On measured term contracts the rates are fixed and the quantities are remeasured. On a contract with a Bill of Quantities (BoQ) the same rates apply, but quantities come from the bill and are adjusted on remeasurement. The rate is the common element.
Related terms
Bill of Quantities (BoQ), Unit Price Contract, Dayworks, Variation, Valuation.
Planyard's job costing tracks actual cost against each budget line, so you can see whether your rates still cover the work as the jobs are done.
