Unit Price Basis Clause Samples
The Unit Price Basis clause defines how payments are calculated based on the number of units of work or goods provided, with each unit having a predetermined price. In practice, this means that the total contract price may vary depending on the actual quantities delivered or performed, and adjustments are made according to measured or agreed quantities. This clause ensures transparency and fairness in pricing, particularly in projects where the exact scope or quantities may not be known in advance, by allocating cost risk and providing a clear method for payment calculation.
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Unit Price Basis. This section is applicable to this contract. The DEPARTMENT shall pay to the CONTRACTOR the unit price amount stated with respect to each item of work on the attached schedule for the total number of units each item of work completed. The number of units shown on the attached schedule is approximate only, and the final payment shall be made for the actual number of units that are incorporated into or made necessary by the work covered by this contract. Should the number of units of completed work of any individual item shown on the attached schedule vary by more than twenty percent (20%) from the number of units stated, either the DEPARTMENT or the CONTRACTOR may request a revision of the unit price for the item so affected, but such changes shall not exceed 10% of the total Contract amount. Both parties agree that under such conditions an equitable revision of the price shall be made. Changes that cannot be classified under any of the contract units may be performed at mutually agreed upon unit prices, or on a lump sum basis. The Department, under this Contract, shall reserve the right to withhold up to 5% consistent with Iowa Code Chapter 573. The Contractor may invoice the Department only for work completed. If the work extends over a period of more than one month, the DEPARTMENT may, upon request by the CONTRACTOR, make written estimates of the value of materials complete in place and the work performed. Estimates shall be on a monthly basis or on a longer period of time mutually agreed upon. No estimate, except the final estimate, shall be for less than five hundred dollars ($500). The estimates shall be figured at the contract unit prices for contracts on a unit price basis or on a mutually agreed upon percentage of the total work completed for contracts on a lump sum basis. Each estimate shall be filed in the form of a claim against the DEPARTMENT. Estimates are approximate only, and shall be subject to correction in the first estimate rendered following the discovery of an error in any previous estimate. Should a reasonable doubt arise as to the integrity of any part of the work completed prior to the final acceptance and payment, the department will deduct from the first estimate rendered, after the discovery of such work, an amount equal in value to the defective or questioned work. Further, such work will not be included in a subsequent estimate until the defects have been remedied or the causes for doubt removed. Within a reasonable period of t...
Unit Price Basis. Should the changes in the plans result in an increase or decrease in the quantities of unit priced Work to be performed, you will accept payment as follows:
(1) All increases in the Work of the type that appears in the Contract as unit price items will, except as provided in Section XIII.G.1.b., “Proposal Basis,” be paid for at the Contract unit bid prices. Decreases in quantities included in the Contract will be deducted from the Contract value at the unit bid prices. No allowances will be made for delays or anticipated profits.
(2) Quantities in excess of 125% of the bid quantities, when the total dollar value of the unit price item exceeds 5% of the original Contract bid amount, will be paid for at a negotiated unit price based on costs that are demonstrated by you and agreed to by the Commissioner. The negotiated unit price can be higher or lower than the Bid Unit Price. Quantities in excess of 125% of the bid quantities, when the total dollar value on any unit price item does not exceed 5% of the total value of the original Contract bid amount, will be paid at the bid unit price.
(3) Quantities below 75% of the bid quantities, when the total value of the unit price item exceeds 5% of the Contract Price at the time of bid, will be paid for at a negotiated unit price based on costs which are demonstrated by you and agreed to by the Commissioner. The negotiated unit price can be higher or lower than the Bid Unit Price. Quantities below 75% of the bid quantities, when the total value on any unit price item does not exceed 5% of the total value of the Contract Price at the time of bid will be paid at the bid unit price.
(4) If the Commissioner and you are unable to agree on a negotiated unit price, the Commissioner will determine a unit price, prepare a Contract Modification with the Work so priced, that you will sign. You may, however, timely dispute the amount of the unit price to the Chief Procurement Officer under Article XIX, “Claims and Disputes.” This is the only Contract Modification in which the release language required by Section XIV.D., “Contractor’s Release,” will not be included.
Unit Price Basis. If the terms of the Subcontract provide for the payment of Work performed on a unit price basis, the unit of measurement for payment shall be one for Work certified. Verification of weights or quantities will be furnished at the time of delivery. In the event the parties fail to agree on the actual quantity performed, the Contractor shall have the right to measure the quantity of Work in place and make final settlement on the basis of such measurement. Unit prices shall be the same for both additions and deductions.