GB/T 50500-2024 pricing and settlement adjustment of prime-contractor service fees: lump-sum-per-item risk-inclusiveness, rate-based adjustment, process settlement, and recomputation at completion settlement

Topic Positioning

Pricing and adjustment of prime-contractor service fees at settlement under GB/T 50500-2024: the different handling of per-item (risk-inclusive) and rate-based pricing, and the calibers in construction process settlement and completion settlement. For settlements involving employer-supplied materials and employer-let specialty works.

Core Conclusions

1. Scope and composition (3.2.9): the fee is the VAT-exclusive price of the corresponding BOQ item for the contractor's service-related contract responsibilities per tender documents and contract, covering management/coordination/cooperation for supplier(s) of employer-provided materials, specialty subcontractors under provisional sums (except contractor-performed), and employer-directly-let specialty subcontractors; it includes management/coordination of employer-supplied materials, material custody fee and profit, coordination/cooperation fees and profit for specialty subcontracts, and cooperation fees for directly-let specialty works. Per 2.0.17 it includes profit; contractor-self-let specialty and labor subcontracts do not attract the fee.
2. Per-item pricing = risk-inclusive (8.5.4): "If priced per item, apart from deductions or adjustments under 8.4.8, 8.5.1-8.5.3, and 8.5.5, the fee is risk-inclusive and shall not be adjusted at settlement." — borne as contractor risk except contractual/statutory adjustments.
3. Rate-based pricing (8.5.4): "If rate-based and the contract is silent or unclear on the basis, adjust per 8.4.8, 8.5.1-8.5.3, and 8.5.5; at settlement it may be computed from specialty subcontract prices, directly-let specialty contract prices, and employer-supplied material purchase contract prices." The standard's formulas may also adjust.
4. Process settlement (10.2.6): compute each specialty subcontract's cumulative fee as (cumulative completed price / subcontract contract price) x the adjusted service-fee total per Section 8.5; employer-supplied materials and directly-let specialty works may follow the same method cumulatively.
5. Completion settlement (10.3.3): the parties recompute the fee from process-settlement files — per Section 8.5 for all specialty subcontracts, directly-let specialty works, and employer-supplied materials; "fees listed in process settlements shall not be a basis for completion settlement."

Applicable Boundaries

• Applies to BOQ-priced employer-contractor activities under GB/T 50500-2024; contracts govern otherwise; per-item vs rate-based follows the BOQ pricing mode and contract (the fee is entered in the "other items list").
• "Risk-inclusive, no adjustment" applies only to per-item pricing; rate-based pricing, contractual adjustments, and completion recomputation are outside that lock.
• Rate levels and bases follow the contract and current local fee standards; specific adjustment cases per 8.4.8, 8.5.1-8.5.3, 8.5.5 verbatim.

Further Reading

• GB/T 50500-2024: 2.0.17 (definition), 3.2.9 (scope), 4.2.6 (method), 6.2.9 (other-items pricing), 8.4.8 and 8.5.1-8.5.5 (deductions/adjustments), 10.2.6 (process settlement), 10.3.3 (completion settlement).
• See the related card for the charging scope (employer-supplied materials and employer-let specialty works attract the fee; contractor-self-let subcontracts do not).