A unit price contract specifies $45 per cubic yard for concrete work. The original estimate was 200 cubic yards, but the actual quantity needed is 275 cubic yards. What is the total payment due for concrete work?
Correct Answer
B) $12,375
In unit price contracts, payment is based on actual quantities. 275 cubic yards × $45 per cubic yard = $12,375 total payment for concrete work.
Why This Is the Correct Answer
In unit price contracts, payment is calculated based on the actual quantities of work performed, not the original estimate. The contractor is paid for the exact amount of work completed at the agreed unit rate. Since 275 cubic yards of concrete were actually used at $45 per cubic yard, the total payment is 275 × $45 = $12,375. The original estimate of 200 cubic yards is irrelevant for payment calculation in this contract type.
Why the Other Options Are Wrong
Option A: $13,750
This calculates payment based on the original estimate (200 cubic yards × $45 = $9,000) rather than the actual quantity used, which is incorrect for unit price contracts.
Option C: $11,250
This appears to be an arbitrary number that doesn't correspond to any logical calculation using the given unit price and quantities.
Memory Technique
Remember 'ACTUAL = PAYMENT' - in unit price contracts, you always pay for the actual work performed, not what was originally estimated.
Reference Hint
Florida Building Construction Standards - Contract Types and Payment Methods, Chapter on Unit Price Contracts
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