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Last edited 23 Dec 2020
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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