How Unit Price Contracts Offer Flexibility
Unit price contracts are useful for projects where the quantity of work is uncertain but can be measured in discrete units. The Client pays for each unit completed, allowing the project to scale up or down without renegotiating the contract. This type of contract provides transparency in pricing, but it also requires accurate tracking of the number of units completed.Best Practices for Managing Unit Price Contracts
Contractors should carefully track all completed units to ensure accurate billing. Clear definitions of what constitutes a “unit” should be established at the outset to prevent misunderstandings. Regular updates on progress and costs should be provided to the client to maintain budget control.Related Terms: Bill of Quantities (BoQ) (BoQ), Cost-Plus Contract