Unit price
In retailing, the unit price is the price of a single item or unit.
In construction, it refers to a valuation method that can be used for buyers of bulk items. This can offer a very simple method of comparing prices.
A unit price contract 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.
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