Unit Price Adjustment Provisions in Construction Contracts
1 hour 30 minutes
Understand the issues involved in unit price contracts from the procurement phase of a project through potential disputes.
Construction projects can utilize a variety of pricing arrangements for contracts and change orders. One of the more common pricing methodologies is the unit price arrangement. Unit pricing is considered a fair and equitable way to establish the cost of certain types of work, and because it is all-encompassing, is relatively easy to administer during the project. However, unit price agreements are not without risk and can expose parties to unforeseen consequences. An understanding of the legal issues involved in unit price contracts from the procurement phase of a project through potential disputes can help owners, design professionals, contractors, subcontractors and their accountants and lawyers mitigate these potential risks. This topic will examine unit pricing in detail, discuss the advantages and disadvantages as compared to other construction pricing arrangements and highlight issues that may arise from the bidding stage through contract close out and the resolution of claims and disputes.
• You will be able to describe adjustment of unit prices.
• You will be able to identify bidding and unit prices.
• You will be able to recognize variation in quantity clauses.
• You will be able to review comparison of basic pricing alternatives.