In a unit price contract for roadwork, the bid includes 5,000 cubic yards of concrete at $120 per cubic yard. The actual quantity used is 5,800 cubic yards. What is the total payment for concrete work?
Correct Answer
C) $696,000
In a unit price contract, payment is based on actual quantities used, not the estimated bid quantities. The total payment is 5,800 cubic yards × $120 per cubic yard = $696,000.
Why This Is the Correct Answer
In a unit price contract, payment is calculated based on the actual quantities of work performed, not the estimated quantities in the original bid. The contractor is paid for the exact amount of materials used or work completed at the agreed unit price. Since 5,800 cubic yards were actually used at $120 per cubic yard, the total payment is $696,000. This protects both parties when actual quantities differ from estimates.
Why the Other Options Are Wrong
Option A: $756,000
This appears to use an incorrect calculation or wrong unit price. The correct calculation is 5,800 × $120 = $696,000, not $720,000.
Option B: $720,000
This uses the original bid quantity (5,000 cubic yards) instead of the actual quantity used (5,800 cubic yards). In unit price contracts, payment must be based on actual work performed.
Option D: $600,000
This uses an incorrect calculation that doesn't match either the bid quantity or actual quantity at the stated unit price of $120 per cubic yard.
Memory Technique
Think 'ACTUAL PAYS' - in unit price contracts, you get paid for ACTUAL work performed, not estimated quantities.
Reference Hint
Florida Building Code Chapter 1, Contract Administration section, or construction contract law references covering unit price contract types
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