What is an Item Rate Contracts?

Answer 1

These contracts are also known as unit-price contracts or schedule contracts. For item rate contracts, contractors are

required to quote rates for individual items of work on the basis of a schedule of quantities furnished by the

customer. The design and drawings are provided by the customer. The contractor bears almost no risk in these

contracts, except escalation in the rates of items quoted by the contractor, as it is paid according to the actual amount

of work on the basis of the per-unit price quoted.