What is a measured term contract in construction?

A measured term contract is an ongoing contract under which a contractor carries out maintenance, minor works, and improvement projects for a single employer over a defined period - typically one to three years. All work is valued against a pre-agreed schedule of rates, and the employer issues individual work orders throughout the contract term. The JCT Measured Term Contract is the standard form used in the UK.

How are payment applications handled under a measured term contract?

Payment applications are typically submitted periodically - monthly is most common - and cover all work orders completed during the period. Each order is priced by measuring the completed work against the schedule of rates. A contract administrator certifies the value, and the contractor invoices for the certified amount. Disputes over individual order valuations are usually resolved in writing and carried into the following period's application.

What happens when a work order scope changes under a measured term contract?

If additional work is instructed beyond the original order description, it should be treated as a variation and given a separate record. Under the JCT Measured Term Contract, variations are valued using the same schedule of rates where applicable. Verbal instructions on site should be confirmed in writing - either via a formal instruction from the contract administrator or a site record signed by the employer's representative.

Operations

Construction - measured term contract management

One contract. Many orders. One clear record.

Zigaflow Editorial

Published 17 July 2026

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Step by step

Receive Work OrderJobs
Log the work order from the contract administrator, recording scope description, property reference, and required completion date.
Measure and PriceQuotes
Visit the site to measure the scope and price the work against the agreed schedule of rates. Confirm labour, material, and sub-contractor requirements.
Mobilize and ScheduleJobs
Raise the job internally, assign operatives, and confirm material orders or sub-contractor bookings to meet the completion date.
Complete Works and Record CostsPurchase Orders
Complete the works, recording actual labour hours, materials used, and any additional items instructed on site that may qualify as variations.
Compile Payment ApplicationInvoices
Present measured quantities at agreed schedule-of-rates prices, plus any agreed additional items, with supporting site records.
Submit and Track Certified SumInvoices
Submit the payment application to the contract administrator. Record the certified sum and note any disputed items for follow-up in writing.
Periodic Billing and ReconciliationInvoices
Consolidate all completed orders into the periodic payment application, reconcile outstanding disputes, and issue the invoice once the certified sum is confirmed.

What this workflow solves

Work orders arrive continuously and without a central log it becomes impossible to track which are in progress, complete, or awaiting valuation - leading to missed items in the monthly payment application.
Pricing against a schedule of rates requires accurate on-site measurement records for each order; without them, disputed certified amounts are difficult to challenge at application stage.
Additional works instructed verbally during site visits are rarely given a separate reference, meaning they drop out of the payment application and are never billed.

Frequently asked questions

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Construction - measured term contract management

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