Unit price contract
An agreement where the contractor is paid based on the number of units of work completed, with each unit priced individually, allowing for flexibility in the final project cost depending on actual quantities used.
Unit price contracts are ideal for projects with repetitive tasks, such as road construction or utility installations, where work is measured in units. They provide clarity and control over costs, allowing for adjustments based on actual quantities. Proper measurement and documentation are crucial to ensure accurate billing and prevent disputes over quantities and rates.
Used in a sentence
Submit the invoice according to the unit price contract for the completed sections.
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