What are Star Rates? – As per above discussion we are now able to define “what are star rates” – Star Rates are the rates jointly agreed by the Engineer and Contractor for valuing of any instructed variations from the contract quantities quoted in the BOQ during bidding stages of the Contract. Also Read: Importance of Building contractors
SINGAPORE: The Ministry of Home Affairs (MHA) has lodged police reports over “possible irregularities” in quotations provided for two construction contracts, after the Auditor-General’s Office (AGO) raised doubts about their authenticity. The two construction contracts are valued at S$333.24 million.

They were audited by AGO as part of its report for the year 2021/2022 and the findings were released on Wednesday (Jul 20). Audits are conducted on a test-check basis. AGO said that its checks on MHA found lapses in the management of contracts for two development projects, singling out how quotations for star rate items were not adequately assessed and had possible irregularities.

Star rate items refer to items for which rates are not listed in the contract. These rates tend to be used for contract variations – when actual works performed are more complex than envisaged at tender – and result in increased costs. “The inadequate scrutiny of contract variations did not provide assurance that MHA had obtained full value for the public funds spent,” said AGO.

• Besides issues with the star rate items, AGO also found lapses in valuations of contract variations, and a lack of supporting documents to substantiate payments made for variations involving dayworks.
• MHA had appointed contractors for the construction contracts and engaged consultants to manage the main construction contracts on its behalf.

“The lapses indicated weaknesses in the monitoring of contract variations and inadequate oversight of the consultants by MHA,” said AGO.

What are StarStar rates and how are they used?

Star Rates In recent years, modern contract forms have brought about significant improvements to the construction landscape. However, some traditional industry traits remain. Variations are the lifeblood of a project. Contractors crave them; employers and consultants loathe them.

• They cause havoc with the programme, disrupt the works and invariably cause disputes as to their need and value.
• Most JCT- and FIDIC-based contracts set out ‘rules’ for valuing variations.
• FIDIC Fourth Edition (1987) Clause 51.1 provides six scenarios where the contractor is entitled to recover additional costs arising from instructed variations, provided that the variation has not resulted from contractor default.

FIDIC Clause 52.1 states that the engineer should value variations in the following order: a) At the rates set out in the contract if, in the opinion of the engineer, the same shall be applicable; b) If the contract does not contain any rates or prices applicable to the varied work, the rates and prices in the contract shall be used as the basis for valuation so far as may be reasonable; c) Failing which, after due consultation by the engineer with the employer and contractor, suitable rates or prices shall be agreed upon between the engineer and the contractor; d) In the event of any disagreement, the engineer shall fix such rates or prices as are, in his opinion, appropriate, and shall notify the contractor accordingly, with a copy to the employer.

1. How do you value variations? Many people have conjured up different and often ‘creative’ ways.
2. One approach is the use of new rates, or ‘Star Rates’.
3. Star Rates tend to be used where the rates in the contract cannot be applied.
4. An example is where an employer requires a technical room.
5. Prior to the works, the contractor is instructed to provide additional electrical outlets, thus complicating the MEP design.

The actual works performed are more complex than envisaged at tender, resulting in increased costs. In such a case, contract rates similar to the work undertaken may be used as the basis to determine a Star Rate to value such work. Alternatively, in the absence of similar rates, suitable rates may be agreed upon by the engineer and contractor.

The difficulty to determine what is often referenced in the contract as a ‘fair rate’ often involves analysis of quotations, market prices and trends. What is meant by ‘similar conditions’? How do you calculate Star Rates? Should they include overhead and profit? Star Rates can be more expensive for the employer if they are based on cost-plus-profit rather than competitively-tendered contract rates.

Not surprisingly, engineers tend to be dismissive of Star Rates, as these move away from the original rates. While there is no guaranteed way around this, if the engineer can be convinced that contract rates are not applicable (in whole or in part) then Star Rates will be applicable – i.e.

rates which are not contract rates, but may be derived in part from some element of the same. In order to successfully negotiate the use of Star Rates, a party must demonstrate to the engineer the inapplicability of contract rates. This might be justified where the works are a different size, quantity, nature and/or scope to that stated in the contract in the case of Weldon Plant V.

Commission for New Towns TCC BLR496, the issue was the meaning of ‘fair valuation’ of variations under ICE 6th Edition Clause 52(1). In particular, whether a contractor was required to prove loss of opportunity as a result of the variation before being entitled to be paid overhead and profit.

The arbitrator decided that Weldon was to be paid an amount which would leave him in the same financial situation he would have been in if the instruction had not been issued. He was entitled to costs, but not overheads and profit. However, on appeal, the Court held that fair valuation would ‘ordinarily’ be based on the reasonable cost of carrying out the work and that this would include labour, plant, materials, the cost of overheads and profit, otherwise it would not be a fair valuation under the Contract.

Although this case falls under English legal jurisdiction and is not legally binding in the Middle East, the principles that arise from the case are persuasive in addressing the evaluation of Star Rates in this region. Edward Ryan is Senior Consultant at Hill Claims Group.

What is the difference between contract and Star rates?

Star Rates In recent years, modern contract forms have brought about significant improvements to the construction landscape. However, some traditional industry traits remain. Variations are the lifeblood of a project. Contractors crave them; employers and consultants loathe them.

They cause havoc with the programme, disrupt the works and invariably cause disputes as to their need and value. Most JCT- and FIDIC-based contracts set out ‘rules’ for valuing variations. FIDIC Fourth Edition (1987) Clause 51.1 provides six scenarios where the contractor is entitled to recover additional costs arising from instructed variations, provided that the variation has not resulted from contractor default.

FIDIC Clause 52.1 states that the engineer should value variations in the following order: a) At the rates set out in the contract if, in the opinion of the engineer, the same shall be applicable; b) If the contract does not contain any rates or prices applicable to the varied work, the rates and prices in the contract shall be used as the basis for valuation so far as may be reasonable; c) Failing which, after due consultation by the engineer with the employer and contractor, suitable rates or prices shall be agreed upon between the engineer and the contractor; d) In the event of any disagreement, the engineer shall fix such rates or prices as are, in his opinion, appropriate, and shall notify the contractor accordingly, with a copy to the employer.

• How do you value variations? Many people have conjured up different and often ‘creative’ ways.
• One approach is the use of new rates, or ‘Star Rates’.
• Star Rates tend to be used where the rates in the contract cannot be applied.
• An example is where an employer requires a technical room.
• Prior to the works, the contractor is instructed to provide additional electrical outlets, thus complicating the MEP design.

The actual works performed are more complex than envisaged at tender, resulting in increased costs. In such a case, contract rates similar to the work undertaken may be used as the basis to determine a Star Rate to value such work. Alternatively, in the absence of similar rates, suitable rates may be agreed upon by the engineer and contractor.

• The difficulty to determine what is often referenced in the contract as a ‘fair rate’ often involves analysis of quotations, market prices and trends.
• What is meant by ‘similar conditions’? How do you calculate Star Rates? Should they include overhead and profit? Star Rates can be more expensive for the employer if they are based on cost-plus-profit rather than competitively-tendered contract rates.

Not surprisingly, engineers tend to be dismissive of Star Rates, as these move away from the original rates. While there is no guaranteed way around this, if the engineer can be convinced that contract rates are not applicable (in whole or in part) then Star Rates will be applicable – i.e.

rates which are not contract rates, but may be derived in part from some element of the same. In order to successfully negotiate the use of Star Rates, a party must demonstrate to the engineer the inapplicability of contract rates. This might be justified where the works are a different size, quantity, nature and/or scope to that stated in the contract in the case of Weldon Plant V.

Commission for New Towns TCC BLR496, the issue was the meaning of ‘fair valuation’ of variations under ICE 6th Edition Clause 52(1). In particular, whether a contractor was required to prove loss of opportunity as a result of the variation before being entitled to be paid overhead and profit.

The arbitrator decided that Weldon was to be paid an amount which would leave him in the same financial situation he would have been in if the instruction had not been issued. He was entitled to costs, but not overheads and profit. However, on appeal, the Court held that fair valuation would ‘ordinarily’ be based on the reasonable cost of carrying out the work and that this would include labour, plant, materials, the cost of overheads and profit, otherwise it would not be a fair valuation under the Contract.

Although this case falls under English legal jurisdiction and is not legally binding in the Middle East, the principles that arise from the case are persuasive in addressing the evaluation of Star Rates in this region. Edward Ryan is Senior Consultant at Hill Claims Group.

What is analysis of rates for building works?

Analysis of rates for building works is the process of separation of works into components/elements (Viz. Labour, materials, machinery,transport, overheads and profit) of work and pricing them.1. Percentage profits & overhead charges: 2. Cement constants: 3. Material constants: 4. Labour output constants: 5.

What is the meaning of the word star rating?

(stɑː ˈreɪtɪŋ) noun. a rating indicated by stars (usually 1–5), the highest number of stars indicating the best quality, highest amount etc. Some suncare products carry a star rating for UVA protection.

What are StarStar rates?

What are Star Rates? – As per above discussion we are now able to define “what are star rates” – Star Rates are the rates jointly agreed by the Engineer and Contractor for valuing of any instructed variations from the contract quantities quoted in the BOQ during bidding stages of the Contract. Also Read: Importance of Building contractors

What is the difference between contract and Star rates?

Star Rates In recent years, modern contract forms have brought about significant improvements to the construction landscape. However, some traditional industry traits remain. Variations are the lifeblood of a project. Contractors crave them; employers and consultants loathe them.

• They cause havoc with the programme, disrupt the works and invariably cause disputes as to their need and value.
• Most JCT- and FIDIC-based contracts set out ‘rules’ for valuing variations.
• FIDIC Fourth Edition (1987) Clause 51.1 provides six scenarios where the contractor is entitled to recover additional costs arising from instructed variations, provided that the variation has not resulted from contractor default.

FIDIC Clause 52.1 states that the engineer should value variations in the following order: a) At the rates set out in the contract if, in the opinion of the engineer, the same shall be applicable; b) If the contract does not contain any rates or prices applicable to the varied work, the rates and prices in the contract shall be used as the basis for valuation so far as may be reasonable; c) Failing which, after due consultation by the engineer with the employer and contractor, suitable rates or prices shall be agreed upon between the engineer and the contractor; d) In the event of any disagreement, the engineer shall fix such rates or prices as are, in his opinion, appropriate, and shall notify the contractor accordingly, with a copy to the employer.

How do you value variations? Many people have conjured up different and often ‘creative’ ways. One approach is the use of new rates, or ‘Star Rates’. Star Rates tend to be used where the rates in the contract cannot be applied. An example is where an employer requires a technical room. Prior to the works, the contractor is instructed to provide additional electrical outlets, thus complicating the MEP design.

The actual works performed are more complex than envisaged at tender, resulting in increased costs. In such a case, contract rates similar to the work undertaken may be used as the basis to determine a Star Rate to value such work. Alternatively, in the absence of similar rates, suitable rates may be agreed upon by the engineer and contractor.

1. The difficulty to determine what is often referenced in the contract as a ‘fair rate’ often involves analysis of quotations, market prices and trends.
2. What is meant by ‘similar conditions’? How do you calculate Star Rates? Should they include overhead and profit? Star Rates can be more expensive for the employer if they are based on cost-plus-profit rather than competitively-tendered contract rates.

Not surprisingly, engineers tend to be dismissive of Star Rates, as these move away from the original rates. While there is no guaranteed way around this, if the engineer can be convinced that contract rates are not applicable (in whole or in part) then Star Rates will be applicable – i.e.

rates which are not contract rates, but may be derived in part from some element of the same. In order to successfully negotiate the use of Star Rates, a party must demonstrate to the engineer the inapplicability of contract rates. This might be justified where the works are a different size, quantity, nature and/or scope to that stated in the contract in the case of Weldon Plant V.

Commission for New Towns TCC BLR496, the issue was the meaning of ‘fair valuation’ of variations under ICE 6th Edition Clause 52(1). In particular, whether a contractor was required to prove loss of opportunity as a result of the variation before being entitled to be paid overhead and profit.

1. The arbitrator decided that Weldon was to be paid an amount which would leave him in the same financial situation he would have been in if the instruction had not been issued.
2. He was entitled to costs, but not overheads and profit.
3. However, on appeal, the Court held that fair valuation would ‘ordinarily’ be based on the reasonable cost of carrying out the work and that this would include labour, plant, materials, the cost of overheads and profit, otherwise it would not be a fair valuation under the Contract.

Although this case falls under English legal jurisdiction and is not legally binding in the Middle East, the principles that arise from the case are persuasive in addressing the evaluation of Star Rates in this region. Edward Ryan is Senior Consultant at Hill Claims Group.

What is analysis of rates for building works?

Analysis of rates for building works is the process of separation of works into components/elements (Viz. Labour, materials, machinery,transport, overheads and profit) of work and pricing them.1. Percentage profits & overhead charges: 2. Cement constants: 3. Material constants: 4. Labour output constants: 5.

How many stars can a respondent rate in a survey?

What is a star rating question? – A star rating question is a type of rating question that allows users to rank attributes on a 5-point scale represented with stars. It is a 5-point matrix question, but instead of radio buttons or checkboxes, stars are used to represent it.

1. The star rating question lets survey respondents evaluate a statement on a visual scale of stars.
2. Survey software calculates a weighted average from the star rating responses.
3. Because of its ease of use, star rating questions are used in many feedback surveys.
4. It gives a quick overview of what the respondent thinks about your products and services.

Star rating questions in surveys To use the star rating question type in QuestionPro surveys, survey creators have to add the question text. The rows with the 5-star rating get added by default. You can add or remove rows and edit the row labels. The order of the rows can be fully randomized or partially randomized, keeping the order of few rows as fixed.

1. Survey creators can also highlight alternate rows in different colors to give a better look and feel to the respondents.
2. To provide more information about the question, they can also add question tips.
3. It can be added in the form of an image icon or a textual link.
4. You can also customize the content of the question help file.

Before sending out your survey, preview your question to have an idea of how it looks. To answer the question, respondents have to click on the nth star they want to rate the answer option. For instance, if a respondent wants to give a rating of 4 out of 5 stars, then he/she needs to click on 4th star.