Contracts & ExecutionQuestion 151 of 1605
A grading contract pays $4.50 per cubic yard of soil excavated, with the final quantity measured in the field. This is a:
a.Unit-price contract
b.Lump sum contract
c.Cost-plus contract
d.Guaranteed maximum price contract
Explanation
A unit-price contract sets a price per unit of work (per cubic yard, per linear foot, etc.). The total contract value depends on the actual measured quantities completed.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)