CSLB C-33 Painting & DecoratingPlanning and EstimatingMedium
A painting contractor is preparing a bid for a project with complex details, and the client requests a 'unit price contract' for certain items, such as linear feet of trim painting or square feet of wall preparation. How does this impact the contractor's bidding strategy?
- AIt allows the contractor to charge for unforeseen conditions without prior client approval.
- BIt means the total project cost is fixed and cannot be adjusted.
- CIt shifts the risk of quantity variations to the contractor, requiring higher contingency.
- DIt requires the contractor to provide a price per unit for specified work, with the final cost dependent on actual quantities.
Show answer & explanationAnswer & explanation
Correct answer: D. It requires the contractor to provide a price per unit for specified work, with the final cost dependent on actual quantities.
A unit price contract requires the contractor to break down costs into specific units (e.g., per linear foot, per square foot). The final project cost is then determined by multiplying the agreed-upon unit prices by the actual measured quantities of work performed, making the total cost variable based on actuals.
Why the other options are wrong
- A. Unit price contracts do not grant contractors carte blanche to charge for unforeseen conditions; such issues typically require change orders.
- B. Unit price contracts are inherently variable; the total project cost is not fixed.
- C. Unit price contracts generally shift the risk of quantity variation to the owner, as the contractor is paid for actual measured quantities.
Unit Price Contract
A contract where the contractor provides prices for specific units of work, and the final payment is based on the actual measured quantities of units completed.
- Total cost is variable, based on actual quantities.
- Requires detailed breakdown of costs per unit.
- Often used when quantities are difficult to estimate precisely.
Memory trick: Unit price means each 'unit' has its price, final bill depends on 'how many' nice.