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The contract price is the price defined for the goods or services to be received or delivered as per the contract agreement. The prices and rates for the contract are defined based on the cost objects such as labor, sundry costs, or material.
What is the unit cost of a contract?
Under a unit price contract, a contractor is paid for the actual quantity of each line item performed as measured in the field during construction. Each unit price includes all labor, material, equipment, overhead, and profit attributable to that scope of work.
What is the contract price of an agreement?
Contract price is a fixed amount agreed to by two parties in a contractual agreement. It is the total payment for goods or services received, determined by factors such as materials, labor, and overhead costs.
What is a contract unit?
The contract unit is a standardized size unique to each futures contract and can be based on volume, weight, or a financial measurement, depending on the contract and the underlying product or market. For example, a single COMEX Gold contract unit (GC) is 100 troy ounces, which is measured by weight.
What does unit price contract mean?
In a unit price contract, a construction company prices individual portions, or units, of work to estimate a total project cost. Each unit is based on several variables, in combination or on their own, such as materials, labor and overhead.
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What is a contract unit price?
A unit price contract is an agreement where the client pays the contractor for individual portions or units of work. In construction, a unit price contract is calculated based on the cost of each separate unit of work instead of a fixed fee for the entire project in contrast to lump sum and GMP contracts.
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