Bid terms glossary
Unit price
A set price per unit of work, used to add or deduct when quantities change.
What it means
A unit price is what a bidder charges per unit of work, such as per cubic yard of rock removed, per linear foot of pipe, or per each additional outlet.
Unit prices are useful when you can't know the exact quantity before work starts. They set the price for extra (or less) work before anyone is under pressure.
Why it matters when leveling bids
Two bids can look the same until quantities change. A high unit price for an item that's likely to grow can cost more than a higher base bid.
Ask every bidder for the same unit prices in the bid request, and check whether each unit price includes everything (labor, material, disposal, markup) or only part of it.
Example wording
Example only
- “Rock excavation: $[amount] per cubic yard, including haul-off.”
- “Additional duplex receptacle: $[amount] each, installed.”
- “Unsuitable soil removal and replacement: $[amount] per cubic yard.”
Made-up wording to show the pattern. Not taken from any real bid. Bracketed items are placeholders.
Level your bids with the free sheet → Get the scope letter template
Related terms: Allowance · Alternate · Change order · All terms
General guidance, not legal advice. How a term works on your project depends on your contract documents.