Unit Price is typically associated with which project delivery method?

Unit Price is typically associated with which project delivery method?

• A. CM-at-Risk
• B. Traditional Delivery Method
• C. Multiple Prime
• D. Design Build

Answer: (B)

Unit pricing is a natural fit when the contract structure relies on measured quantities. In a traditional delivery approach, the project is designed, a detailed bill of quantities is prepared, and the contractor submits bids with prices for each unit of work (for example, per cubic yard of earthwork, per square foot of concrete, etc.). The owner then pays for the actual quantities measured during construction, multiplied by the agreed unit prices. This allows the final cost to track actual quantities as work progresses, which is especially useful when quantities are uncertain at the bidding stage. In other delivery methods, pricing tends to be fixed or based on a guaranteed maximum price for a defined scope, with changes handled through negotiated adjustments rather than relying on unit prices for the bulk of the work. So while unit prices may appear for specific items or changes, they’re not the primary pricing method in those approaches.

Unit pricing is a natural fit when the contract structure relies on measured quantities. In a traditional delivery approach, the project is designed, a detailed bill of quantities is prepared, and the contractor submits bids with prices for each unit of work (for example, per cubic yard of earthwork, per square foot of concrete, etc.). The owner then pays for the actual quantities measured during construction, multiplied by the agreed unit prices. This allows the final cost to track actual quantities as work progresses, which is especially useful when quantities are uncertain at the bidding stage.

In other delivery methods, pricing tends to be fixed or based on a guaranteed maximum price for a defined scope, with changes handled through negotiated adjustments rather than relying on unit prices for the bulk of the work. So while unit prices may appear for specific items or changes, they’re not the primary pricing method in those approaches.