Definition
A Unit Rate Contract (or Item Rate Contract) is the most prevalent form of construction contracting in India. Instead of agreeing to a single fixed lump-sum price for the entire building, the client agrees to pay specific, itemized rates—for example, ₹5,000 per cubic meter of concrete, and ₹60 per kg of steel. The final cost of the project fluctuates based on the exact, physically measured quantities at the end.
Practical Example
A developer signs an Item Rate contract for earthwork at ₹300 per cubic meter. The initial BOQ estimated 1,000 cubic meters (budgeted at ₹3 Lakhs). During excavation, they hit hard rock and have to dig wider, ultimately excavating 1,200 cubic meters. Under the Unit Rate contract, the developer must pay the contractor ₹3.6 Lakhs (1200 x ₹300).
Application in Superwise
Unit Rate contracts demand extreme vigilance against quantity inflation. Superwise empowers Quantity Surveyors to audit bills flawlessly. When the contractor submits an RA Bill claiming 1200 cubic meters, the QS compares this against the digital Measurement Book. Because the unit rate (₹300) is locked in the Superwise Work Order, the math is always perfect—stopping rate-tampering fraud.
Related Feature
Learn how Superwise handles this in our dedicated feature:
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