A unit price contract specifies $45 per cubic yard for concrete work. The original estimate was 800 cubic yards, but actual quantity used was 950 cubic yards. What is the total payment for concrete work?
Correct Answer
B) $42,750
In a unit price contract, payment is based on actual quantities. 950 cubic yards × $45 per cubic yard = $42,750.
Why This Is the Correct Answer
In a unit price contract, payment is calculated based on the actual quantities of work performed, not the original estimate. The contractor is paid for the exact amount of materials used or work completed at the predetermined unit rate. Since 950 cubic yards of concrete were actually used at $45 per cubic yard, the total payment is 950 × $45 = $42,750. The original estimate of 800 cubic yards is irrelevant for payment calculation in this contract type.
Why the Other Options Are Wrong
Option A: $38,250
This answer uses an incorrect calculation method, possibly adding the unit price incorrectly or using wrong quantities in the multiplication.
Option C: $47,500
This answer incorrectly uses the original estimated quantity (800 cubic yards) instead of the actual quantity used. The calculation 800 × $45 = $36,000 represents what would have been paid if only the estimated amount was used.
Option D: $36,000
This answer appears to be an average or compromise between the estimated and actual quantities, but unit price contracts don't work this way. Payment must be based solely on actual quantities performed.
Memory Technique
Remember 'ACTUAL = PAYMENT' for unit price contracts. The estimate is just a guess - you get paid for what you actually do, not what you thought you'd do.
Reference Hint
Look up 'Contract Types' or 'Unit Price Contracts' in your Florida Construction Law or Project Management reference materials, typically found in chapters covering contract administration or payment methods.
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