What does a unit-price estimating method allow a contractor to calculate?

The unit-price estimating method is a valuable tool for contractors as it allows them to calculate the estimated price based on actual quantities used in a project. This method breaks down a project into various units of work, enabling contractors to assign a specific price to each unit. As they determine the actual quantities needed for each unit during the project, they can effectively estimate the overall cost based on those quantities multiplied by the pre-determined unit prices.

For instance, if a contractor knows that the price for laying a square foot of concrete is $5, and they estimate that 1,000 square feet will be required, they can easily calculate that part of the project will cost around $5,000. This method is particularly useful for projects where the work types and quantities can vary significantly, allowing for adjustments based on actual usage rather than fixed costs. This flexibility makes it easier for contractors to provide accurate bids and manage their finances through the project lifecycle.