A contract where the contractor is paid a fixed rate per unit of work, with the total based on actual quantities completed.
A unit price contract is a contract type in which the owner pays the contractor a fixed price per unit of measured work, such as per cubic yard of excavation or per linear foot of pipe. The total contract value is determined by multiplying the unit prices by the actual quantities installed. Unit price contracts are common for civil work where quantities are uncertain at bid time.
The road project used a unit price contract at $85 per ton for asphalt paving; when the final quantity came in at 2,100 tons, the contract value was $178,500.
Get AI-powered bid alerts, automated form filling, and proposal drafting.
Start Free Trial