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Unit Price Contract type

Given the following information about two bid items in a unit price contract , determine what would be the final payment to the contractor? Item 1 - Excavation: Estimated Quantity = $10,000 c.y; Actual measured quantity = $9,500; Unit Price = $3.00. Item 2 - Backfill : Estimated Quantity = $7,500 c.y ; Actual Measured Quantity = $9,000; Unit Price = $4.00

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Apr 27, 2020

A unit price contract differs from a fixed price contract in that the total cost will depend on the total "units" performed or provided. So, here you would disregard the estimated quantities (I assume the estimated quantities are properly described in cubic yardage and not dollars) and just use the "actual measured quantity" multiplied by the applicable unit price, as follows: Item 1 - Excavation: $3.00 x 9,500 c.y. = $28,500 Item 2 - Backfill: $4.00 x 9,000 c.y. = $36,000 TOTAL: $64,500

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