Unit Price
The unit price lets you budget and pay for the work based on what is actually built: you multiply the unit price of each item by the quantity measured on site. So if 120 m² of wall were built, you pay 120 times the wall’s unit price.
The unit price comes from a unit price analysis: you first calculate the direct cost (materials + labor + equipment) and then apply the percentages for overhead, financing, profit, and any additional charges.
It is the working unit of a construction budget: a schedule of items —the bill of quantities— is, at its core, a list of items each with its unit, quantity, and unit price.
Formula
Example
If the unit price of a brick wall is 480 per m² and 120 m² are built, the amount is 480 × 120 = 57,600.
| Item | Unit | Quantity | Unit price | Amount |
|---|---|---|---|---|
| Materials | ||||
| Red clay brick | pza | 42.00 | $6.80 | $285.60 |
| Cement-sand mortar 1:4 | m³ | 0.030 | $2,150 | $64.50 |
| Labor | ||||
| Mason | jor | 0.180 | $520 | $93.60 |
| Laborer | jor | 0.180 | $380 | $68.40 |
| Equipment | ||||
| Small tools 3% | % | — | — | $4.86 |
Frequently asked questions
How is a unit price calculated?
It is calculated with a unit price analysis: you add up the inputs (materials, labor, and equipment) to get the direct cost, then apply overhead, financing, and profit.
What is the difference between a unit price and a direct cost?
The direct cost is only materials, labor, and equipment. The unit price is the direct cost plus overhead, financing, and profit.
What units is a unit price expressed in?
In the item’s unit of measure: per square meter (m²), cubic meter (m³), linear meter (lm), ton, piece, and so on.