- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 08 Nov 2020
Unit pricing 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.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
The real economic impact of historic preservation.
None have anything to do with maths, physics or science!
Report includes sales vs production of compressors by type.
Government announces latest plans for growth.
Will the new requirements - once passed - go far enough?
These post-WWII modular buildings were unpopular, yet ubiquitous.
What's the verdict from the court of public opinion?
Shift to home-based work influences closed plan preferences.
An overview of the current state of the market.
Organisation offers best practices for construction and modification.
Heritage on the edge?
Prioritising tax considerations.
The four D creative process: discover, define, develop and deliver.
National Cyber Security Centre initiative is announced.