In a unit price contract, the contractor bids $125 per cubic yard for concrete placement. The original estimate was 400 cubic yards, but the actual quantity installed was 475 cubic yards. What is the total payment for concrete placement?
Correct Answer
B) $59,375
In a unit price contract, payment is based on actual quantities installed. 475 cubic yards × $125 per cubic yard = $59,375. The original estimate quantity is not used for payment calculations.
Why This Is the Correct Answer
In a unit price contract, payment is calculated by multiplying the actual quantity of work performed by the agreed-upon unit price. The contractor installed 475 cubic yards of concrete at $125 per cubic yard, resulting in a total payment of $59,375. The original estimate of 400 cubic yards is irrelevant for payment purposes - only the actual work completed matters in unit price contracts.
Why the Other Options Are Wrong
Option A: $62,500
This answer ($57,500) incorrectly uses the original estimated quantity of 400 cubic yards instead of the actual installed quantity (400 × $125 = $50,000 is not even this amount, so this may involve other calculation errors).
Option C: $57,500
This answer ($62,500) uses an incorrect unit price of approximately $131.58 per cubic yard, which is not the contracted rate of $125 per cubic yard.
Option D: $50,000
This answer ($50,000) appears to be calculated using an incorrect unit price of approximately $105 per cubic yard, or possibly using the wrong quantity altogether.
Memory Technique
Remember 'ACTUAL = PAYMENT' - in unit price contracts, you get paid for the actual work you do, not what you estimated you'd do.
Reference Hint
Florida Building Code - Chapter on Contract Types and Payment Methods, or Construction Contracting Business and Law reference materials covering unit price contracts
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