Unit Price is defined as?

Unit Price is defined as?

• A. Type of work is defined, but extent is unknown or likely to change.
• B. A fixed total project price.
• C. An advertisement to bid.
• D. A payment term.

Answer: (A)

Unit price pricing centers on a price for each unit of work defined in the contract, while the total amount depends on the actual quantities delivered or measured. The statement that best fits this concept is that the type of work is defined, but the extent (quantity) is unknown or likely to change, so you pay per unit as quantities are determined. This approach works well when quantities are uncertain or may vary due to site conditions or design changes—the contract uses fixed unit prices, and the overall cost is calculated by multiplying those unit prices by the actual quantities completed. This differs from a fixed total project price (lump sum), which assumes quantities are known upfront; from an advertisement to bid, which is simply inviting bids; and from a payment term, which describes how and when payments are made rather than how prices are structured per unit. For example, you might have a unit price for concrete per cubic yard, and the total cost becomes unit price times the actual cubic yards installed.

Unit price pricing centers on a price for each unit of work defined in the contract, while the total amount depends on the actual quantities delivered or measured. The statement that best fits this concept is that the type of work is defined, but the extent (quantity) is unknown or likely to change, so you pay per unit as quantities are determined. This approach works well when quantities are uncertain or may vary due to site conditions or design changes—the contract uses fixed unit prices, and the overall cost is calculated by multiplying those unit prices by the actual quantities completed.

This differs from a fixed total project price (lump sum), which assumes quantities are known upfront; from an advertisement to bid, which is simply inviting bids; and from a payment term, which describes how and when payments are made rather than how prices are structured per unit. For example, you might have a unit price for concrete per cubic yard, and the total cost becomes unit price times the actual cubic yards installed.