How is the total payment under a unit-price contract determined? When is such a contract likely to be more economical for the owner than a lump-sum contract? For the contractor? Explain.
How is the total payment under a unit-price contract determined? When is such a contract likely to be more economical for the owner than a lump-sum contract? For the contractor? Explain.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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How is the total payment under a unit-price contract determined? When is such a contract likely to be more
economical for the owner than a lump-sum contract? For the contractor? Explain.
Expert Solution
Step 1
Unit price contract is a common pricing contract which is based on each unit or task of the contract. Unit price contracts are commonly used for recurring projects. The price and tasks under unit price contracts are easily quantifiable.
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