Episode 12 - Clauses to Watch in Schedule of Rates Contracts

This week on The Subbies Toolbox Podcast, Michelle Cirson breaks down one of the most misunderstood contract models in Commercial Construction — schedule of rates contracts.

At face value, these contracts can look flexible and straightforward. But in reality, they can quietly lock Aussie Subbies into long-term obligations, outdated pricing, unclear project durations and impossible practical completion dates.

Michelle shares real project examples from both builder-side and subcontractor-side experience to explain how schedule of rates contracts are being used across major civil and infrastructure projects, and the hidden risks subcontractors need to watch before signing.

Inside this episode, we cover:

How schedule of rates contracts actually work in practice

The danger of unclear start and finish dates

Outdated pricing and long-term project exposure

Practical completion clauses that don’t make commercial sense

Liquidated damages risks in undefined scopes of work

Variation traps and mobilisation cost blowouts

The difference between genuine schedule of rates work and lump sum contracts disguised as one

If you’ve ever signed a schedule of rates contract assuming you were getting the whole project, this episode is worth a listen before your next negotiation.