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Section D-6
Unit Prices

The Joint Committee recommends that Unit Prices be used only when necessary and when the scope of work can be accurately described. Unit Prices should include the Contractor's overhead and profit. There should be a differential allowed between "add" and "deduct" unit prices.

In a lump sum bid situation, unit prices should not be used in determining the successful bidder. If the scope of work has changes equaling an addition or subtraction over 10% of the originally scheduled amount, the Owner should renegotiate the unit prices with the Contractor or consider completing the work on a lump sum basis.

TAGS: Lump Sum and Unit Prices.

Glossary Terms for the Best Practices Guide

History of Recommendation:
Revised May, 2009
Reviewed April, 1987
Revised July, 1985

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