Construction work and contract types - unit price agreements

Construction under a unit price agreement

 This type of contract is most widespread in highway and railway building due to the variables related to earthwork it is extremely challenging to provide exact quantities.
 
The clients representative therefore, provides the expected quantities, and the contractors are in rivalry over their capability to complete the work. 

In a unit-price agreement, the contractor bases the price on approximate amounts of work and on the completion of the project in agreement with the contract documents.