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When are unit prices especially useful?

Correct Answer

A) When final quantities may vary and payment can be based on measured units.

Unit prices support payment adjustment when measured quantities differ.

Answer Options
A
When final quantities may vary and payment can be based on measured units.
B
When no quantities will be measured
C
When all work is paid only by salary
D
When the owner wants no price basis

Why This Is the Correct Answer

Unit prices support payment adjustment when measured quantities differ.

Why the Other Options Are Wrong

Option B: When no quantities will be measured

In procurement and contracting, When no quantities will be measured. is the wrong selection for Unit price contract use: it leaves out the controlling Unit price contract use result: When final quantities may vary and payment can be based on measured units.

Option C: When all work is paid only by salary

The trap in C is When all work is paid only by salary. That selection is wrong because it tries to bypass the Unit price contract use checkpoint.

Option D: When the owner wants no price basis

Choice D gives When the owner wants no price basis. Its specific error: the option does not produce the required Unit price contract use outcome, When final quantities may vary and payment can be based on measured units.

Memory Technique

Use a closeout folder memory cue for unit price contract use: the stem's condition unlocks When final quantities may vary and payment can be based on measured units.

Reference Hint

Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Unit prices" to confirm that Unit prices support payment adjustment when measured quantities differ.

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