Unit price contracts does NOT include

Unit price contracts does NOT include

• A. Indefinite delivery or indefinite quantity contracts.
• B. Time and materials contracts (not fixed-price contract)
• C. Guaranteed Maximum Price (GMP)
• D. Basic ordering agreement or blanket contracts (allow multiple delivery dates to take advantage of predetermined pricing).

Answer: (B)

Unit price contracts base payment on a fixed price for each unit of work, so the total cost is determined by actual quantities completed. This makes them a good fit for scenarios where quantities aren’t known upfront, and they pair well with arrangements that predefine unit prices for multiple orders or deliveries. Indefinite delivery/indefinite quantity setups, where work is authorized in units over time, and blanket or basic ordering agreements that lock in unit prices for repeated orders both align with this approach. A ceiling like a guaranteed maximum price can exist in some arrangements to cap total cost while still using per-unit pricing for the work. Time and materials contracts, by contrast, reimburse actual labor hours at set rates plus materials, without a fixed unit price per quantity, so they don’t fit the unit price contract model.

Unit price contracts base payment on a fixed price for each unit of work, so the total cost is determined by actual quantities completed. This makes them a good fit for scenarios where quantities aren’t known upfront, and they pair well with arrangements that predefine unit prices for multiple orders or deliveries. Indefinite delivery/indefinite quantity setups, where work is authorized in units over time, and blanket or basic ordering agreements that lock in unit prices for repeated orders both align with this approach. A ceiling like a guaranteed maximum price can exist in some arrangements to cap total cost while still using per-unit pricing for the work. Time and materials contracts, by contrast, reimburse actual labor hours at set rates plus materials, without a fixed unit price per quantity, so they don’t fit the unit price contract model.