Module 6: Preventing corruption in project construction

Controls: rates and rate adjustment

Implement effective controls over contract rates and any rate adjustment.
The procurement controls (covered in Module 5 “Preventing Corruption in Project Procurement”) should ensure that the relevant contract specifies:
- the rates that will apply
- the circumstances when rates can be adjusted
- the procedures for adjusting the rates.
Appoint a qualified and honest manager who is responsible for approving any adjustments to the contract rates and who:
- verifies that there is a legitimate reason for the rate adjustment
- verifies that the rate adjustment is in accordance with the contract
- is alert for any suspicious indicators of corruption in relation to the rates and rate adjustment.
Require the approval of at least two managers where a rate adjustment has a high cost impact.

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