A Unit Price Contract is a type of contract based on estimated quantities of items and unit prices (rates: hourly rates, rate per unit work volume, etc.). In general, the contractor’s overhead and profit are included in the rate. The final price of the project is depending on the total quantities needed to carry out and complete the work. The Unit Price Contract is only suitable for well-known resources involved project but unknown quantities at the time of the contract which will be defined when the design and engineering or construction work is completed.
Related Definitions in the Project: The Project Management; Project Contract
