Unit Price Analysis (UPA)
A UPA answers one concrete question: how much does it cost to produce a single unit of a work item (a cubic meter of concrete, a square meter of wall, a ton of reinforced steel)? To answer it, you list every input involved, its quantity per unit (the consumption coefficient) and its cost, then add them up.
Each line of the analysis multiplies a quantity by the unit cost of the input. Summing materials, labor and equipment gives the direct cost; on top of it you apply the percentages for overhead, financing, profit and additional charges to reach the final unit price.
On most public works contracts a unit price analysis is required, and it is standard practice on private jobs as well. Traditionally it is calculated in desktop estimating software or spreadsheets; today it is also done in the cloud with tools like Matterial.
Formula
Example
UPA for 1 m³ of structural concrete: cement, sand, gravel and water (materials) + a crew of mason and helper (labor) + a concrete mixer (equipment). You add up the direct cost and apply overhead and profit to obtain the unit price per m³.
| 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
What is a unit price analysis used for?
It reveals the real cost of each work item so you can build a reliable, comparable estimate. On public works it is also a requirement in order to bid.
What does a UPA contain?
Materials, labor, equipment and tools (the direct cost), plus the percentages for overhead, financing, profit and additional charges that lead to the final unit price.
What is the difference between a unit price and a lump sum?
A unit price is paid per unit actually built (m², m³, ton), whereas a lump sum is a fixed amount for the entire job regardless of the quantities.