Measured Term Contracts
Measured Term Contracts (MTC) and Their Purpose in the Construction Industry
Clients often appreciate the benefits of Measured Term Contracts, which have a predetermined period, often 3 years, but may be extendable. Measured Term Contracts give Clients peace of mind that you have a reliable construction team on hand ready for facilities management, small refurbishments and repairs or alterations, extensions and new builds alike, without having to go through the time consuming and often costly exercise of putting each small project, job or order out to tender.
There is one tender process at the beginning of the Measured Term Contract, where construction companies tender discounts against a predetermined published Schedule of Rates which cover all the items of work most likely to be required during the term of the contract. The successful contractors then work to the Standard Form of Measured Term Contract which is issued by the JCT (Joint Contracts Tribunal). This covers all contractual obligations, terms of payment, contract periods, health and safety, insurances and control of work and is prepared by Keelagher Okey Klein. The work is measured and paid for at the tendered rates from the schedule. The client pays for the work at predetermined properly tendered bulk rates without the need to show multiple contractors around every prospective job.
What this means to the Client
Measured Term Contracts can provide Clients with a more accurate cost prediction for each of the projects during the predetermined period and an accurate method of agreeing final values on completed jobs which is beyond dispute. The health and safety arrangements are set up for the contract, meaning better management of individual orders. An additional benefit is that over this term, the contractor, subcontractors and professional teams become familiar with the Client’s premises and properties, standards and procedures, enabling our Quantity Surveyors, Building Surveyors, Principal Designers and CDM Advisors to act quickly and provide appropriate solutions to suit each individual site, project or order.
Every project, whether a large new build or a small maintenance job will begin with an order from the Client to the Contractor, which will include a start and completion date and a priority rating. The MTC Quantity Surveyor (Keelagher Okey Klein) will keep a close control on costs, monitor financial deadlines, accommodate any additional instructions, check measurements and agree final accounts, keeping the client informed and offering advice to the whole team where appropriate.
Keelagher Okey Klein MTC Experts
At Keelagher Okey Klein we are experts in Measured Term Contracts, having provided these services to our Clients for over 30 years. We understand the importance of team working, partnering, communication and clear transmission of information and we pride ourselves in providing high quality construction consultancy services putting safety management first whilst balancing time and cost management.
We provide a free consultation when you are considering an MTC, where you are able to ask all the questions and get all the answers you need. We would welcome the opportunity to further explain the Measured Term Contract in person, so please contact Hannah Ellison or John Okey on 01925 654158.