Basic Rate

Member for

19 years 10 months

Hi Sankar

You need to check the definitions in your contract document and what is described there.

In the absence of anything set down I would assume that the basic rate for materials is the cost when it is delivered to the site - including all taxes and levies.

Best regards

Mike Testro

Member for

15 years 1 month

Dear Sir,

Our Project is an item rate contract , item rates are mentioned in BOQ (which cover ever thng).Basic rate for material is mentioned in Contract to cover escalation in price .So how can we define this basic rate? it can be landing cost ,it can be cost without tax ,with tax,with freight & without freight,with wastage ,without wastage.

Thanks & Regards

Sankar

Member for

19 years 10 months

Hi Sankar

A basic rate is the sum set in the Price column of a BoQ to cover the work described in the BoQ item. When multplied by the quantity it gives the contract price for that item.

The basic rate covers everything required to complete the work which is set down in the drawings and specification and described in the BoQ.

Matters such as taxes and levies will be described in the item coverage in the SMM or in the pricing guide in the invitation to tender.

Best regards

Mike Testro