The significant feature of ‘unit price contract’ is that the price per unit. Although quantities may vary, Unit Price is fixed at the time the contract is entered into and it is to remain unchanged throughout the work performance. Variations are allowed during the execution of the project. Explain in your own words what ‘Variations’ are?

Q: Describe the two stages involved in pricing an estimate.

A: Pricing of estimate is defined as the approximate calculation of cost of the project. The…

Q: With an increase in quantities, the unit price drops due to: Reduced contribution of fixed costs…

A: With an increase in quantities, the unit price drops due to economies of scale. The fixed costs does…

Q: : A construction company had a number of projects and needed to a construction equipment to be used…

A: Given Data: Choice 1: The total cost of buying Equipment=$50000 Operational and repair cost=…

Q: Provide a technical justification for the following: i. Formula for price adjustment (escalation)…

A: Price adjustments on account of increases or decreases in the costs of products and services in…

Q: Why do you think john was hesitant to quote an exact price during the first meeting? Why did Ken…

A: Note: Hi! Thank you for the question, As per the honour code, we are allowed to answer three…

Q: What is the 5% factor for concreting works and why do we use it? Explain why the bid estimates are…

A: A question is about Construction Management abd estimation

Q: What are unit price contracts?

A:

Q: Can you produce an accurate forecast of the cost of a project using the cost-per-unit method of…

A: Estimation of the building is important in pre-planning so that a rough estimate can be prepared and…

Q: What are the three levels of accuracy recognized in estimating capital costs?

A: Different levels of cost of capital estimates offer key input for choices over the lifetime of…

Q: Define the term fixed-price contracts?

A: A fixed-price contract is also known as a lump-sum contract or a firm-price contract. It establishes…

Q: What is the cost Reimbursable contract?

A: A constructional contract is defined as an agreement between two parties in which general and…

Q: For the past 7 years, you had paid $500 every 6 months for a software maintenance contract. What is…

A:

Q: In a FFP contract generally a(n) unit price hourly rate service product and service product is being…

A: A firm fixed price (FFP) contract stipulates a price that is fixed and not susceptible to change…

Q: Discuss Overlap and underlap of Subcontracted work and the Problem Associated with each Condition

A: The cases of overlap and underlap arise where work is not clearly identified as being part of a…

Q: On a unit-price contract, if a contractor includes a unitprice of $145.00 per meter for 765 meters…

A: Given data: Unit price is $145.00 per meter Length of pipe is 765 meters. Incorrect amount is…

Q: Cost estimation plays a vital role in the success of any project. Explain the different tools and…

A: The cost estimation: Cost estimation is one of the important parts of a project, the process of…

Q: . Is the contract lump-sum, unit-price, or cost-plus-fixed-fee?

A: The lump sum contract is the most common type of an owner-contractor agreement, and is fairly easy…

Q: Describe the procedure of how partial payments to the contractor is done?

A: Partial payment is also called as progress payments. These payments are based on the percentage of…

Q: How can we calculate depreciation of any equipment?

A: Depreciation- It is defined as a technique that allows an organization to list its asset value over…

Q: Explain how an estimate is priced in two phases

A: Introduction: Estimated pricing is defined as an approximation of the project's cost. The…

Q: On lump-sum contracts, what are the  two methods available toutilize a PC computer in determining…

A: Lump-sum contracts : In lump sum construction contract, contractor fix a single fixed price for all…

Q: What are the benefits of the forwarding the pricing change orders?

A: Forward pricing is defined as the estimated work cost which is yet to be carried out.

Q: lished at $18,000,000. The contract calls for a fixed fee of one million dollars for the contractor…

A: Given:- GMP established cost=$18,000,000 To find:- the owner's cost and contractor's profit if…

Q: In the given project, the expected markup is 30%, four payments are expected to be paid to the…

A: Plot the given data:

Q: What is the fixed-price incentive contract?

A: Fixed price incentive contract is a contract in which a fixed percentage on the total target cost or…

Q: How can we find asset value after 'a' years in service ?

A: The reduction in the value of an asset after serving a period of time is called depreciation. To…

Q: is rate of return resulting from the shuffling of funds within a company from project to project.…

A: Explanation -  Internal rate of return is a rate of return calculated from available cash flow and…

Q: Is the final amount paid to a contractor under a unitprice contract limited by the quantities of…

A: Let's understand first what is unit price method: In a unit value contract, the complete agreement…

Q: Are the quantities of supplies or work stated in the original Bid Schedule used to determine the…

A: The explanation of the quantities of supplies or work stated in the original Bid Schedule used to…

Q: Name two types of negotiated contracts and describe themethod of payment and incentive concept.

A: There are two types of negotiated contracts are as follows: 1) Cost+Percent of cost 2) Cost+Fixed…

Q: Advantage of Measured or Unit rate Contract اختر أحد الخيارات a. the tender sum tells him the exact…

A: Given: Measured or Unit rate contract is mainly used in the field of public construction works. It…

Q: 1. Write the objectives and procedure of value engineering. Assume a sum of $10,000 is invested for…

A: Objectives and procedure of value engineering: The main objective is to cut back project price,…

Q: What is the derivation of the costing of a new item of work not included in the original contract?

A: When there is a new item which is not included in the original contract then the following steps are…

Q: 1. If cost-plus a fixed amount with an arrangement for sharing any cost savings is established, and…

A: The given value of amount i.e. 160,000$ is of contractor not the employer, so technically amount…

Q: on the typical project, there are usually how manyprime contracts with the owner?

A: There are generally two prime contracts occur with the owner in a typical project.

Q: Advantage of Measured or Unit rate Contract اختر أحد الخيارات a. the tender sum tells him the exact…

A: Concept- Unit Rate Contract- A unit rate contract is based on anticipated material quantities and…

Q: What is the purpose of a price allocation form?

A: The price allocation form is a start to finish list of work item on a project that represent the…

Q: Advantage of Measured or Unit rate Contract اختر أحد الخيارات a. the tender sum tells him the exact…

A: This question is from costing and estimation subject   Here we are asked to find a advantage of unit…

Q: Explain why the bid estimates are not always equivalent to the final contract amount after the…

A: Bid estimates are the approximate cost estimate of any project submitted by the competent authority…

Q: Is it advisable to use cost-loaded CPM for progress payments to the contractor on unit-price…

A: The cost-loaded schedule is composed of the works that have been ordered and distributed across the…

Q: An agricultural engineer had a previous building project having 500 sq.m. for a bagged storage…

A:

Q: During what period can a contractor withdraw the bid without penalty?

A: A contract is a legal bond between two or more two parties. It specifies the duties and…

Q: What is the Annual Equivalent Worth Criterion?

A: When the equal payments on annual basis are determined for measuring investment worth then it is…

Q: Why is the contractor liable of providing the surety bonds to obtain written release prior to the…

A: Let's first understand that what is surety bond: A Surety bond may be a triangular contract. One…

Q: The activities involved in the construction of a small building are given below. The price of the…

A: From the given data it is required to determine the maximum amount of cash the contractor needs to…

Q: Retainage is usually given as a percentage of an overall project cost, typically O 10 %. 25 40 65…

A: Option a) i.e (10%) is correct

Types of Contracts

A verbal or written agreement between a person and a firm, for undertaking construction, material supply, maintenance, and repair work which is enforceable by law is termed as a contract. The person who undertakes the contract for execution of the work is termed as a contractor. The contracts are classified into different types depending on the nature of the contract.