Civil Engineering Contracs Of Different Types



  1. Item Rate Contract.
  2. Percentage Rate Contract.
  3. Lump Sum Rate Contract.
  4. Labour Rate Supply Contract.
  5. Material Rate Supply Contract.
  6. Piece Rate Contract.
  7. Turn Key Contract.


Item Rate Contract :-

In this system of contracts  a contractor is required to quote rate of Individual Item of Works in Tender. This system of Contract is mainly done in Railway Department.
Advantages:  a) Ring Formation  cannot be done.
b) Thorough analysis of rates can be done.
Disadvantages:  a) The Comparative Statement cannot be made at the time of the opening of the

Percentage Rate Contract :-

In this system of contract a contractor is required to quote the rate as Percentage above or Percentage Below or At Per with Rate Provided in the Tender by the Concerned Departments. This system is followed in all other government departments other than Railways.
Advantages:  a) The Comparative Statement can be made at the time of the opening of the Tender.
b) The Total expenditure can be known before hand.
Disadvantages: a) There are chances of Ring Formation.

Lump Sum Contract :-

In this system of contract a contractor is required to quote a fixed sum of money for the completion of a work completed in all respect according to the Specifications, Drawings and Designing provided in the Tender within the Completion Period.
Advantages: a) The expenditure for a work can be known before hand.
b) No intermediate payment is to be done.
c) No problems of taking measurements.
d) The Contractor will have a erg to complete the work before time as the payment is
made one time only after the completion of the work.
Disadvantages: a) In this type of contract the intermediate progress of the work cannot be known.
b) in this type of contract it’s difficult to judge the quality of the work.
c) The Lump Sum Contract cannot be done for Repair and Maintenance Estimate.

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