Important Comparisons in Unit Price Payment Contracts

Description

This Skill Bit highlights the flexibility of unit price contracts, where payments are based on unit rates and completed quantities of work. This differs from lump sum contracts, which offer a fixed price for the entire project, and cost-plus contracts, where costs are reimbursed with an additional fee. Unit price contracts allow for adjustments based on actual work completed, making them ideal for projects with uncertain scope, while requiring detailed tracking and management.

Duration approx. 5 Min.

Tier: proficiency