A term contract provides for the appointment of a consultant for an agreed period of time based on a priced task schedule and staff rates for different grades of staff. Prices on the task schedule are either a lump sum for that item, or may be carried out on a time basis.
The consultant bears the risk of being able to perform the tasks at the agreed prices. When the client wants the services to be carried out they are simply selected from the task schedule and the consultant is instructed.
If the client wants the consultant to carry out services that are not on the task schedule, they are notified as compensation events (similar to relevant events on other forms of contract). This will result additional payment being made, priced using the compensation event assessment procedure.
Measured Term Contract
Measured term contracts are used where the client has a regular programme of works that they would like to be undertaken by a single contractor. They are generally used for minor works or for maintenance work.
The contract will generally define the buildings that will be covered by the works, the term over which works may be required (usually between one and three years), an estimate of the likely total value of the works that will be required over the term and an estimate of the likely size of individual orders.
Appointment is based on an agreed schedule of rates related to the categories of work that are likely to form part of the programme.
When individual works are required, the client issues an instruction (or order) to the contractor which may include a written description of the works, drawings if appropriate and a valuation agreed by the client and contractor.