Schedule of Rates

A schedule of rates is a table of rates for specific activities that can be used to negotiate commercial terms when the broad activities are known but not the precise quantities. Schedule of rates contracts lend themselves to be used in two different situations. First, when the precise quantity of work cannot be assessed up front in order to allow a lump sum price to be quoted, and second, where there is ad-hoc work which can be undertaken against a standing order at an agreed rate without the need for lump sum quotations. For example, a maintenance contractor may be engaged to undertake periodic painting work. Rather than ask for a price on a job-by-job basis, the contractor may be invited to submit a quotation per square metre for the work. The client can then measure each job and calculate the agreed price. See also Contract, Time and Materials.