Unit pricing contract - Revision history

Designing Buildings at 08:41, 8 November 2020

2020-11-08T08:41:56Z

← Older revision		Revision as of 08:41, 8 November 2020
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	* Unit price.		* Unit price.

−	[[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 07:32, 13 July 2018

2018-07-13T07:32:08Z

← Older revision		Revision as of 07:32, 13 July 2018
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	Unit pricing can benefit the client because it is quite easy to compare and benchmark prices, and it can allow an early start to works before their exact extent has been determined. It can be beneficial for the contractor because it largely removes the risk of inaccurate estimation of uncertain quantities.		Unit pricing can benefit the client because it is quite easy to compare and benchmark prices, and it can allow an early start to works before their exact extent has been determined. It can be beneficial for the contractor because it largely removes the risk of inaccurate estimation of uncertain quantities.
		+
		+	This is similar to a measurement contract in the UK.

	= Find out more =		= Find out more =
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	* Fixed price contract.		* Fixed price contract.
	* Guaranteed maximum price.		* Guaranteed maximum price.
		+	* Measurement contract.
	* Provisional sums.		* Provisional sums.
	* Target cost.		* Target cost.

Designing Buildings at 07:30, 13 July 2018

2018-07-13T07:30:17Z

← Older revision		Revision as of 07:30, 13 July 2018
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−	In the United States, a unit price contract is a type of construction contract ~~commonly used by builders and federal agencies~~.	+	In the United States, a unit price contract is a commonly-used type of construction contract.

	It may be entered into based on a price per unit, such as an hourly rate, specific item, amount of work, volume, and so on. This can allow a contract to be agreed based on approximate quantities, and then the actual payment determined by the number of units actually required. For example, a price might be given per kilometre of highway to be laid, based on an approximate estimate of the distance required, and then the actual payment calculated based on measurement of the final length of the highway that has been constructed.		It may be entered into based on a price per unit, such as an hourly rate, specific item, amount of work, volume, and so on. This can allow a contract to be agreed based on approximate quantities, and then the actual payment determined by the number of units actually required. For example, a price might be given per kilometre of highway to be laid, based on an approximate estimate of the distance required, and then the actual payment calculated based on measurement of the final length of the highway that has been constructed.

−	This type of contract is suitable for big public works such as infrastructure projects which ~~involves lots of~~ repetitive tasks and resources that are easily quantifiable. However, if a project involves multiple complex trades and activities, it is not particularly suitable as it can be difficult to accurately predict the quantities needed for each unit.	+	This type of contract is suitable for big public works such as infrastructure projects which involve repetitive tasks and resources that are easily quantifiable. However, if a project involves multiple complex trades and activities, it is not particularly suitable as it can be difficult to accurately predict the quantities needed for each unit.

−	Unit pricing ~~benefits~~ the ~~owner~~ because it is quite easy to ~~verify the goods~~ and ~~services price as being reasonable or not~~. It is beneficial for the contractor because it largely removes the risk of inaccurate estimation of uncertain quantities.	+	Unit pricing can benefit the client because it is quite easy to compare and benchmark prices, and it can allow an early start to works before their exact extent has been determined. It can be beneficial for the contractor because it largely removes the risk of inaccurate estimation of uncertain quantities.

	= Find out more =		= Find out more =
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	* Provisional sums.		* Provisional sums.
	* Target cost.		* Target cost.
−	* [[Time_and_material_contract_(T&M)\|Time and material contract (T&M).]]	+	* [[Time_and_material_contract_(T%26M)\|Time and material contract (T&M).]]
	* Unit price.		* Unit price.

	[[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 15:08, 12 July 2018

2018-07-12T15:08:55Z

← Older revision		Revision as of 15:08, 12 July 2018
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	* Provisional sums.		* Provisional sums.
	* Target cost.		* Target cost.
−	* Time and material contract (T&M).	+	* [[Time_and_material_contract_(T&M)\|Time and material contract (T&M).]]
	* Unit price.		* Unit price.

	[[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor: Created page with "In the United States, a unit price contract is a type of construction contract commonly used by builders and federal agencies. It may be entered into based on a price per unit, ..."

2018-07-12T15:07:17Z

Created page with "In the United States, a unit price contract is a type of construction contract commonly used by builders and federal agencies. It may be entered into based on a price per unit, ..."

New page

In the United States, a unit price contract is a type of construction contract commonly used by builders and federal agencies.

It may be entered into based on a price per unit, such as an hourly rate, specific item, amount of work, volume, and so on. This can allow a contract to be agreed based on approximate quantities, and then the actual payment determined by the number of units actually required. For example, a price might be given per kilometre of highway to be laid, based on an approximate estimate of the distance required, and then the actual payment calculated based on measurement of the final length of the highway that has been constructed.

This type of contract is suitable for big public works such as infrastructure projects which involves lots of repetitive tasks and resources that are easily quantifiable. However, if a project involves multiple complex trades and activities, it is not particularly suitable as it can be difficult to accurately predict the quantities needed for each unit.

Unit pricing benefits the owner because it is quite easy to verify the goods and services price as being reasonable or not. It is beneficial for the contractor because it largely removes the risk of inaccurate estimation of uncertain quantities.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Construction contract.
* Cost reimbursement contract.
* Contract conditions.
* Contract sum.
* Fixed price contract.
* Guaranteed maximum price.
* Provisional sums.
* Target cost.
* Time and material contract (T&M).
* Unit price.

[[Category:International]] [[Category:Contracts_/_payment]] [[Category:Procurement]]