Star Rates are used to price work where the unit rates in the contract cannot fairly represent the work done exactly. Usually, contract unit rates that are similar to the work done are used in negotiations to determine the Star Rate.
Star Rates may be used, for example, where the original installation work is required in a new location that presents higher installation difficulties.
The difficulty may be to determine what is often referenced in the contract documents as a fair rate, often involving analysis of quotations, market prices and trends.
