Under a unit price contract, concrete work is priced at $145 per cubic yard. The original estimate was 850 cubic yards, but actual placement was 920 cubic yards. What is the total payment due for concrete work?
Correct Answer
B) $133,400
In a unit price contract, payment is based on actual quantities placed, not estimated quantities. Total payment = 920 cubic yards × $145 per cubic yard = $133,400.
Why This Is the Correct Answer
Under a unit price contract, payment is always based on the actual quantities of work performed, not the original estimated quantities. This is a fundamental principle of unit price contracts where the contractor assumes the risk of quantity variations. The calculation is straightforward: multiply the actual quantity placed (920 cubic yards) by the unit price ($145 per cubic yard) to get $133,400. This protects both parties by ensuring payment reflects the actual work completed.
Why the Other Options Are Wrong
Option A: $123,250
This amount ($123,250) appears to be calculated using an incorrect quantity or rate, possibly mixing up numbers from the problem or applying an incorrect calculation method.
Option C: $140,500
This amount ($140,500) doesn't correspond to any logical calculation using the given numbers and appears to be a distractor answer.
Option D: $145,000
This amount ($145,000) incorrectly uses 1,000 cubic yards instead of the actual 920 cubic yards placed, showing a fundamental misunderstanding of unit price contract principles.
Memory Technique
Remember 'ACTUAL = PAYMENT' for unit price contracts. The estimate is just for bidding; you always get paid for what you actually install.
Reference Hint
Florida Building Construction Standards - Chapter on Contract Types and Payment Methods, specifically the section covering Unit Price Contracts
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