Unit pricing contract
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.
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 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.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.