Unit Price Contracts Sample Clauses
A Unit Price Contracts clause establishes that payment for work will be based on predetermined rates for specific units of work, rather than a lump sum for the entire project. Under this arrangement, the contractor is compensated according to the actual quantities of work performed, such as cubic yards of concrete poured or linear feet of piping installed, with each unit having an agreed-upon price. This approach provides flexibility for projects where the exact quantities of work cannot be precisely determined in advance, ensuring that both parties are fairly compensated or charged for actual work completed and reducing disputes over unforeseen changes in project scope.
Unit Price Contracts. 1. Payment will be made for the actual quantity of Work completed during the payment period and for materials and equipment stored during the payment period per the Contract Documents.
a. Payment amount is the Work quantity measured per the Contract Documents multiplied by the unit prices for that line item in the Agreement.
b. Payment for stored materials and equipment will be made per Paragraph 17.06.
2. Measure the Work described in the Agreement for payment. Payment will be made only for the actual measured and/or computed length, area, solid contents, number, and weight, unless other provisions are made in the Contract Documents. Payment on a unit price basis will not be made for Work outside finished dimensions shown in the Contract Documents. Include cost for waste, overages, and tolerances in the unit price for that line item.
Unit Price Contracts. The following provision on quantity overruns will be included in all future unit price contracts under Paragraph (B) Variations from Engineer's Estimate (or equivalent provision): "If during the progress of the work, the actual quantity of items required to complete the work of any unit item approaches the estimated quantity, and due to errors, site conditions, changes in design or any other reason, it appears that the actual quantity necessary to complete the work will exceed the estimated quantity by 25 percent, the Contractor shall immediately notify the Engineer of such anticipated overruns. The Contractor shall not be compensated for work performed in excess of one hundred twenty five (125) percent of the estimated quantities in the bid schedule without written authorization from the Engineer. The Contractor will be paid at the unit price bid for quantities up to one hundred twenty five (125) percent of the estimated quantities listed in the bid schedule. If quantities on any item exceed one hundred twenty five (125) percent of the estimate, the City reserves the right and the Contractor agrees to renegotiate the unit price bid to a new unit price for such quantities. If the City and Contractor cannot agree to a new price then the City, if it requires additional units of the item, shall order the Contractor and the Contractor agrees to perform the additional work on a time and material basis for the actual and reasonable cost as determined under Article 26 but in no event at a cost exceeding the bid price.
Unit Price Contracts. A. Comparison of Bids – Bids on Unit Price Contracts will be compared on the basis of total estimated price, arrived at by taking the sum of the estimated quantities of such items multiplied by the corresponding unit prices, and including any lump sum bids on individual items, in accordance with the Engineer’s Estimate of quantities of such items multiplied by the corresponding units prices, and including any lump sum bids on individual items, in accordance with the Engineer’s Estimate of Quantities set forth in the Bid Form.
B. Variations from Engineer’s Estimate – If during the progress of the work, the actual quantity of items required to complete the work of any unit item approaches the estimated quantity, and due to errors, site conditions, changes in design or any other reason, it appears that the actual quantity necessary to complete the work will exceed the estimated quantity by 25 percent, the Contractor shall immediately notify the Engineer of such anticipated overruns. Bidders are warned that the Engineer’s Estimate of ▇▇▇▇▇▇▇▇▇▇ on the various items of work and materials is only an approximation, given solely to be used as a uniform basis for the comparison of bids, and is not to be considered part of this contract. The quantities actually required to complete the contract work may be less or more than so estimated, and if so, no actions for damages or for loss of profits shall accrue to the contractor by reason thereof. The contractor shall not be compensated for work performed in excess of one hundred twenty five (125) percent of the estimated quantities in the bid schedule without written authorization from the Engineer. The contractor will be paid at the unit price for bid for quantities up to one hundred twenty five (125) percent of the estimated quantities listed in the bid schedule. If quantities on any item exceed one hundred twenty five (125) percent of the estimate, the City reserves the right and the contractor agrees to re negotiate the unit price bid to a new unit price for such quantities. If the City and contractor cannot agree to a new price then the City, if it requires additional units of the item, shall order the contractor and the contractor agrees to perform the additional work on a time and material basis for the actual and reasonable cost as determined under Article 26 but in no event at a cost exceeding the bid price.
Unit Price Contracts