Module 6: Preventing corruption in project construction

Controls: rate adjustment

Implement effective controls over any adjustment to contract rates.
Rates could include, e.g:
- rates in bills of quantities
- labour, equipment and material rates used in claims for variations or delay.
Ensure that the contract with the winning contractor states:
- the required rates
- the circumstances where a rate adjustment is permitted
- an appropriate method for adjusting rates.
Appoint a suitable manager who is responsible for approving any rate adjustment, and who:
- verifies that there is a legitimate reason for the rate adjustment
- verifies that rate adjustment is in accordance with the contract
- is alert for any suspicious indicators in relation to the rate adjustment.
Require the approval of two managers where a rate adjustment has a high cost impact.

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