Question

Which among the following is not an advantage of schedule of rates?

(a) The client can stop and start work at a pace that might be determined by cash flow or funding

(b) It is flexible in relation to scope and contractual commitment

(c) A larger pool of contractors can be asked to tender as the process is inexpensive and quick

(d) Additional resources are required to measure work and certify payments

The question was asked in an interview for internship.

My question is from Schedule of Rates for Different Used Material topic in portion Schedule of Rates Metric and F.B of Civil Engineering Drawing

Answer 1

Right option is (d) Additional resources are required to measure work and certify payments

To elaborate: Option “Additional resources are required to measure work and certify payments” is disadvantage.

The disadvantages include:

• Additional resources are required to measure work and certify payments.

• The client does not have a final price when committing to starting work.

• It is difficult for contractors to plan long-term resources and so might mean changes to personnel with loss of continuity.

• Contractors may be tempted to front-load costs in case later work does not materialise.

• There is no real incentive for contractors to treat such work with any sense of urgency and its best staff will be placed on the projects where the contractor is carrying more risk.