Business Studies, asked by shifask2434, 1 year ago

Advantage and disadvantage of item rate contract

Answers

Answered by Anonymous
2

Answer:

Advantages: --profit of contractor is linked with actual cost so economic completion of work. --Early completion.

Disadvantage : profit is not assured & depends on economy achieved in construction.

______❤️

Answered by lakshayjain1701lj
7

Answer:

An item rate contract, or unit price or schedule contract is a type of contract which is undertaken on per piece or item basis. Simply, it is a type of contract where the contractor works and gets paid on 'per item basis'. The quote rate is based on the quantity manufactured or work done by them.

Explanation:

Advantages of contracts include: Provides proof of what was agreed between you and the other party. Helps to prevent future misunderstandings or disputes by making the agreement clear from the beginning. Gives you security and peace of mind by having the terms of the agreement down on paper which the terms do not ...

Similar questions