In contrast to the lump-sum, or fixed-price, type of contract, the unit-price contract allows
some flexibility in meeting variations in the amount and quantity of work encountered
during construction. In this type of contract, the project is broken down into work items
that can be characterized by units such as cubic yards, linear and square feet, and piece
numbers (e.g., 16 window frames). The contractor quotes the price by units rather than
as a single total contract price. For instance, he or she quotes a price per cubic yard for
concrete, machine excavation, square foot of masonry wall, etc. The contract proposal
contains a list of all work items to be defined for payment. Items 1 to 4 in Section 1
of Figure 2.9 provide a typical listing for unit-price quotation. This section is reprinted
for reference.