A pricing mechanism in construction contracts based on a series of line items identifying discrete tasks or scopes of work.

Under a unit price contract, a contractor is paid for the actual quantity of each line item performed as measured in the field during construction. Each unit price includes all labor, material, equipment, overhead, and profit attributable to that scope of work.

Unit price contracts are commonly used on:

They are best suited for construction work consisting of repetitive tasks that are easily measured.

For more information on bidding, applying, and adjusting unit price contracts, see Practice Note, Construction Pricing: Understanding Pricing Structures: Unit Prices.