In a unit price contract for 5,000 linear feet of fencing at $28 per linear foot, the actual quantity installed was 5,450 linear feet. What is the total contract amount to be paid?
Correct Answer
C) $152,600
In unit price contracts, payment is based on actual quantities. The total is 5,450 linear feet × $28 per linear foot = $152,600, regardless of the original estimated quantity.
Why This Is the Correct Answer
In unit price contracts, the contractor is paid based on the actual quantities of work performed, not the original estimated quantities. The contract establishes a fixed unit price ($28 per linear foot), but the total payment adjusts based on actual installation. Since 5,450 linear feet were actually installed at $28 per foot, the total payment is $152,600. This protects both parties when quantities vary from estimates.
Why the Other Options Are Wrong
Option A: $147,300
This appears to be an arbitrary amount that doesn't correspond to either the estimated quantity calculation or the actual quantity calculation.
Option D: $150,000
This amount doesn't match any logical calculation using either the estimated or actual quantities with the given unit price.
Memory Technique
Remember 'ACTUAL PAYS' - in unit price contracts, you get paid for ACTUAL quantities installed, not estimated quantities.
Reference Hint
Florida Building Construction Standards - Contract Types and Payment Methods chapter, specifically Unit Price Contract provisions
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