What is star rates?
Answer:
*Star rate assesment:
All unit rates or lumpsum items not covered by term contract rates are considered as Star rate.
Star rates are considered acceptable if the rates are :
a, Equal to or close to the term rate of similar nature or unit rate employed by the government authorities -Housing Authority,ASD BUT NO MORE THAN 15% difference.
b,Equal to or close to <or=to 15% rate previously employed in other lumpsum contract.
c,competitive with the quotations from alternative contractors.
d,A built up rate which can be assessed by raw materials cost, labour cost and preliminaries plus reasonable overheads and profits, but no major special material involved[special material cost<or= to 30% of lumpsum price.]
If the star rates cannot be assesed/aproved by the above methodes, a negotion can be made and the final unit rate approved by the director in the writing.Otherwise , star rates items must be taken out for tendering.
The above assessment methode should be released to all term contractors for information.
When you have a contract for maintenance or renovation of a large size project, usually lasting 2-3 years, the contract specifies what things will be done, and for what cost. If the contractor does some work not covered under the existing agreed-upon schedule of rates, then a new rate, or "star rate" will be created and jointly agreed on for the purpose of this work.
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