What is Admeasurement Contract in Construction?

“Admeasurement Contract” means a Contract under which the Works are executed on the basis of agreed rates and prices in a Bill of Quantities and payment is made for the quantity of work actually executed.

 

Admeasurement contracts are normal civil engineering contracts that measure the actual quantities of work that is carried out. As per ICE Conditions of Contract measurement clauses, admeasurement contracts are referred to establish the difference between the final quantity of work carried out and the quantity that is originally anticipated. 

Admeasurement Contract in Construction

An admeasurement contract usually represents an engineering input into a project. 

The value of work executed is calculated as the measured quantity of work, multiplied by the unit rate. Hence, it is used in a contract based on unit price. A unit price contract is based on estimated quantities of items included in the project and unit prices (hourly rates, rate per unit work, volume, etc.).

In the admeasurement contract, the items of work are specified in the Bill of Quantities or Schedule of Rates. The contractor during the bidding specified the rate against each item. The BOQ is submitted inclusive of the risk contingencies that may be incurred. Here, the payment is performed monthly, based on the work completed. 

Admeasurement contracts are mainly used in the prequalification process i.e. before bidding. 

An admeasurement contract is applied where the type of work can be described in a reasonable way but the exact amount cannot be mentioned. One such example is excavation work, where the quantity of excavation is difficult to assess until the works commence. 

These contracts are employed when there are little or no changes expected in the project, or the level of risk is low or quantifiable. 

Advantages of Admeasurement Contract

This contract enables the client to introduce changes in the work defined in the contract. In certain situations, additional payments for the changes made can be incurred. 

Disadvantages of Admeasurement Contract

Claim resolution is very difficult, as the client is unaware of actual cost or hidden contingencies. 

Also Read: What is Construction Cost Estimation?