Unit Prices are used for which purpose?

Unit Prices are used for which purpose?

• A. To provide per-unit costs for specific work items to adjust quantities.
• B. To fix the price regardless of quantity.
• C. To set the contract’s bonding requirements.
• D. To determine the project closeout date.

Answer: (A)

Unit prices provide per-unit costs for specific work items so quantities can be adjusted without re-bidding. This allows the project to accurately price changes in scope or conditions that alter how much work is needed, by multiplying the actual quantity by the unit rate. For example, if excavation is priced per cubic yard, any change in the amount of earth moved is reflected in cost using that rate, keeping the price fair and based on the measured work. The other options describe scenarios that don’t fit how unit prices are used: a fixed price regardless of quantity corresponds to a lump-sum contract, bonding requirements are a separate financial/risk issue, and the project closeout date is guided by scheduling, not unit pricing.

Unit prices provide per-unit costs for specific work items so quantities can be adjusted without re-bidding. This allows the project to accurately price changes in scope or conditions that alter how much work is needed, by multiplying the actual quantity by the unit rate. For example, if excavation is priced per cubic yard, any change in the amount of earth moved is reflected in cost using that rate, keeping the price fair and based on the measured work. The other options describe scenarios that don’t fit how unit prices are used: a fixed price regardless of quantity corresponds to a lump-sum contract, bonding requirements are a separate financial/risk issue, and the project closeout date is guided by scheduling, not unit pricing.