Can settlement review/audit adjust awarded unit rates? — unit-price contract rate locking, statutory adjustment exceptions, and the limits of audit authority

Topic Positioning

A frequent completion-settlement dispute: can settlement review (popularly "settlement audit") directly adjust awarded comprehensive unit rates? Covers the rate-locking rule for unit-price contracts, the statutory exceptions, the boundary of fiscal appraisal/audit authority, and procedural limits — for cost consultancy, settlement review, project audit, and contract disputes.

Core Conclusions

1. Basic rule: rates within the contractual risk range are fixed; review checks item by item, no re-pricing.

• T/ZBD 100.5-2023, 3.1.6(2): "For BOQ items within the contract, check item by item whether the comprehensive unit rate matches the priced BOQ. Where a change alters a priced item, adjust the rate per the current national standard. Absent other contractual agreement, rates shall not adjust otherwise. For price fluctuation beyond the risk range, adjust per 3.1.7."
• GB/T 51095-2015, 8.2.5: completion settlements compile per contract type — lump-sum: adjust agreed adjustable contents and risks beyond range on the contract price; unit-price: "comprehensive unit rates within the contractual risk range remain fixed, measured per contract and by actually completed quantities"; cost-plus: per contract method.
• T/ZBD 100.5-2023, 1.1.7: settlement review confirms the contract price; confirmation and adjustment need legal, contractual, and factual bases.

2. Exceptions allowing rate adjustment at settlement.

• Adjustable events (GB/T 50500-2024, 8.1.1): BOQ defects, provisional sums, provisional prices, prime-contractor service fee, dayworks, price fluctuation, law/policy changes, changes, new works, claims, and other agreed events.
• Changed or defective items, quantity change <= 15% (incl.): rate per 8.9.1 — identical items under identical conditions use the contract rate; similar characteristics or conditions use converted similar rates; different — negotiated reasonable market rates considering implementation and similar contract pricing; significantly worsened conditions from deleted items allow negotiated change rates.
• Quantity change > 15% (excl.): per 8.9.2 — increases: reasonably reduce contract and new rates considering labor/material purchase discounts; decreases: reasonably increase considering lost discounts.
• BOQ-defect re-measurement: per 8.2.1 with the 15% boundary applying 8.9.1/8.9.2.
• Other review adjustments (T/ZBD 100.5-2023, 3.1.6): provisional equipment/material rates and employer-supplied materials adjusted per jointly confirmed prices and contract principles (item 4); materials actually used differing from contract adjusted per contractual principles (item 3).
• Appraisal caliber (T/ZBD 100.4-2023, 4.4.4): a unit-price party seeking rate adjustment is appraised per contract: (1) provisional prices replaced by employer-confirmed rates or the contractor's actual tender award; (2) price fluctuation per agreed range and method, or industry documents where only adjustability is agreed, or no adjustment where expressly excluded (unless the principal rules the clause invalid and requires otherwise); (3) characteristic mismatches (same drawing edition at tender and construction); (4) quantity deviation beyond the agreed band, or per national standard/industry practice absent one.

3. Fiscal appraisal/audit boundary: administrative supervision does not alter contractual settlement.

• SPC reply (2008) Min Yi Ta Zi No. 4: "Fiscal appraisal of government-invested construction is state supervision of the employer's capital — it does not affect contract validity or performance. But where the construction contract expressly makes the fiscal appraisal conclusion the settlement basis, the conclusion shall be that basis."
• Fa Gong Bei Han [2017] No. 22 and Guo Fa Mi Bei Han [2017] No. 447: "Local regulations directly making audit results the completion-settlement basis, or requiring such in tender documents or contracts, restrict civil rights and exceed local legislative authority — to be corrected."
• I.e., government audit/fiscal appraisal cannot unilaterally overturn contract rates; audit reductions normally run through quantity reductions and change/visa/adjustment review under contract and fact; audit conclusions bind only where the contract expressly adopts them.

4. Procedural limits.

• GB/T 50500-2024, 10.3.12: after the parties sign and seal the completed settlement check, the employer shall not require the contractor to repeat the check with another consultant; absent legal provisions, the signed and sealed settlement is effective per contract.
• GB/T 50500-2024, 10.3.10: where the consultant's check differs from the contractor's file, it goes back for review; no written objection in time deems acceptance of the checked settlement.
• DB42/T 823-2021, 8.1.5: projects with a countersigned settlement confirmation form a de facto settlement agreement; neither party may unilaterally overturn it; absent legal grounds or the counterparty's consent, other consultants should not take repeated review of the same project from the same employer.

Applicable Boundaries

• Applies to completion review/audit of unit-price contracts; lump-sum and cost-plus follow their own rules.
• Core premise "absent other contractual agreement": adjustable-rate and audit-basis clauses govern.
• Bands and risk ranges follow the contract; failing that, national standards (GB/T 50500-2024's 15%) or industry practice.
• Fiscal/audit conclusions are not a settlement basis absent express adoption; signed settlements are not re-checked (subject to law or agreement).
• This card does not compute specific adjustments or regional fee differences; disputes need the contract and full project records.

Further Reading

• T/ZBD 100.5-2023, 3.1.6 (incl. measures/other items/employer-material deductions), 1.1.7.
• GB/T 50500-2024: 8.1.1, 8.2.1, 8.9.1, 8.9.2, 10.3.10, 10.3.12 (the 2013 edition's "no repeat check" rule carried into 10.3.12).
• GB/T 51095-2015, 8.2.5.
• T/ZBD 100.4-2023, 4.4.4.
• DB42/T 823-2021, 8.1.5.
• SPC (2008) Min Yi Ta Zi No. 4; Fa Gong Bei Han [2017] No. 22; Guo Fa Mi Bei Han [2017] No. 447.