Definition
Unit pricing is quoting or billing by a defined unit of work—per square foot, per linear foot, per cubic yard, per fixture, per hour, etc. The price is stated as “$X per SF” or “$Y per LF,” and the total is quantity × unit price. It is common in contracts, schedules of values, and change orders.
Why It Matters
Unit prices make bids comparable and change orders fair: both parties agree on the rate per unit, and only quantity is in dispute. They also support progress billing when work is measured (e.g., SF of drywall installed). Contractors need to build unit prices from cost (labor, material, equipment) plus markup.
Field Example
Drywall: $4.50 per SF installed (labor and material). A change order adds 200 SF; price = 200 × $4.50 = $900. The $4.50/SF was derived from labor hours per SF, material per SF, and desired margin. The schedule of values might list “Drywall, 5,000 SF @ $4.50” = $22,500.
Calculation / Formula (if applicable)
Unit price (to charge) = (Labor cost per unit + Material cost per unit + Equipment/overhead per unit) × (1 + Markup) or ÷ (1 − Margin). Total = Quantity × Unit price.
Software Application
Support line items with quantity, unit (SF, LF, CY, EA, HR, etc.), and unit price. Calculate extended amount. Use in estimates, bids, schedules of values, and change orders. Allow building unit price from cost components (labor, material) and markup/margin. Report by unit for variance and historical analysis.
Tooltip Version
Unit pricing is quoting or billing by a measurable unit (e.g., per SF or per LF) so total = quantity × unit price; it’s standard for bids and change orders.
Related Objects
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