Unit Price Contract is a type of contract based on estimated quantities of items and unit prices (rates: hourly rates, rate per unit work volume, etc.). Some common types of contracts are used in the engineering and construction industry: Lump Sum Contract; Unit Price Contract; Cost Plus Contract; Incentive. Definition of unit price contract: Construction contract in which the client or owner pays a fixed sum for each completed unit of work.
The correct calculation of contract rates of the dredging project is crucial whether calculated as a unit cost or a lump sum price. Under a unit price contract, a contractor is paid for the actual quantity of each line item performed as measured in the field during construction. Each unit price. We've all experienced this scenario: We're out shopping and we see an item we like. There's a sale going on so we decide to buy it.
In the United States, a unit price contract is a commonly-used type of on a price per unit, such as an hourly rate, specific item, amount of work. Unit price contracts may be used for routine contracted service requirements, where the total value of the contract can be calculated by multiplying identical units. Definition of UNIT PRICE CONTRACT: Construction contract where the client pays a set sum for each unit of work when it is. Unit Price or Re-measurement contracts are a common way for owners to define the structure of how a construction project is to be quoted by.