Proposals · Glossary
What is a schedule of rates?
A schedule of rates is a list of agreed prices per unit of work, such as an hour of labour, a call out or a fitted item, that is applied to work as it is ordered. The client knows the price of each unit in advance but not the total, because quantities are only known once the jobs are done.
Maintenance contracts, facilities work and panel arrangements rarely have a fixed scope. A schedule of rates is how both sides agree prices without knowing how much work the year will bring.
Indunil Asanka · Co-founder
4 min read · Published
| Item | Unit | Rate |
|---|---|---|
| Licensed electrician | Hour | $95.00 |
| Apprentice | Hour | $55.00 |
| Call out, includes first 30 minutes on site | Visit | $110.00 |
| After hours surcharge | Hour | $45.00 |
| Supply and fit LED downlight | Each | $68.00 |
| Supply and fit interconnected smoke alarm | Each | $165.00 |
What it is and how it is used
A schedule of rates fixes prices, not quantities. The client signs a term agreement, often for one to three years, with the schedule attached, then orders work one job at a time through work orders. Each invoice applies the agreed rates to what was actually done. It suits work that recurs but cannot be scheduled in advance: repairs, compliance testing, cleaning variations and small works across many sites.
A month of charges, worked
Suppose the centres in the prompt order three call outs in March, the jobs take 7.5 hours of electrician time in total, and four downlights are replaced. The invoice is three call outs at $110, which is $330, plus 7.5 hours at $95, which is $712.50, plus four downlights at $68, which is $272. That totals $1,314.50 before GST, $131.45 of GST and $1,445.95 to pay. Nobody negotiated the March price; the schedule set it.
Why public buyers like unit pricing
United States federal construction rules say lump sum pricing should normally be preferred, but unit pricing is the better choice when quantities cannot be estimated with enough confidence, when large quantities of similar work are involved, or when estimated quantities may change significantly. The same logic applies to small business work: if neither side can count the jobs in advance, agree what each one costs instead. UK VAT guidance makes a related point for invoices, that countable services such as an hourly rate should show their unit price.
Common mistakes
Defining units loosely, so an hour might mean on site time or include travel, and a call out might or might not include the first half hour. Leaving out a rule for work not on the schedule, which then gets priced in a hurry. Forgetting an annual review, so rates set in a cheap year stay for three. And agreeing to rates without any estimate of volume, which leaves the supplier unable to plan staff and the client unable to budget.
Where it shows up in the product
In the proposals module each line carries a unit label and a unit price, and quantity accepts up to three decimals, so a rate line such as hour, visit or each fits naturally. A line can be marked quantity editable with a minimum and maximum, which lets the client adjust quantities in the client view, and price hints in the brief become lines at exactly those prices. Terms are written as numbered clauses, which is where the definitions of an hour or a call out belong.
Questions people ask
Is a schedule of rates the same as a rate card?
They overlap. A rate card is usually a marketing or sales document listing standard prices for anyone. A schedule of rates is a contractual list agreed with one client, often negotiated, attached to a term agreement and used to price every work order. A business might start from its rate card when preparing a schedule for a tender.
How often should a schedule of rates be reviewed?
Most term agreements review rates once a year, either by negotiation or by a formula such as a consumer price index adjustment. Writing the review date and the method into the agreement avoids a supplier quietly absorbing a year of wage and material increases, or a client facing an unexpected jump on renewal.
What happens to work not listed on the schedule?
The agreement should say. Common approaches are to quote it separately before starting, to price it at labour rates plus materials at cost with a stated markup, or to treat it as a variation. Without a rule, unlisted work becomes the first argument of the contract.
Do schedule of rates contracts guarantee any work?
Usually not. Many term agreements and panels state that the client does not guarantee any minimum volume, so a supplier can be appointed and receive few orders. If you are investing in staff or stock to serve the contract, ask for an indication of expected volume or a minimum spend.
Should a schedule of rates include GST?
Business to business schedules in Australia are commonly shown excluding GST with a clear note, because the buyer claims the GST back and compares ex GST prices. Whatever you choose, label every rate column clearly as including or excluding GST, and keep it consistent with the invoices you will issue.
Make one with proposals
The button opens the generator with this use case already described. Change the wording to match your own.
Create a proposal with OneCraftRelated questions
- What is a bill of quantities?What is a bill of quantities: an itemised list of measured work and materials that contractors price, what a BOQ holds, and how it differs from a quote.
- What is a call out fee?What is a call out fee: the fixed charge a tradesperson makes to attend a job, what it covers, how it differs from a service fee, and how to quote it.
- Fixed price vs time and materialsFixed price vs time and materials: who carries the risk when a job runs over, what each quote shows, when a capped rate fits, and how to choose.
- What is a day rate?What is a day rate: the price for one working day, how to build it from target income, costs and billable days, and when to quote by the day.
Step by step in the builder: Create a quote with AI, then Add a pricing table with optional extras.
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