How is payment determined under a unit-pricing contract?

In a unit-pricing contract, payment is determined specifically based on the amount of material abated. This approach involves breaking down the project into measurable units, typically involving a specific quantity of materials. For instance, if asbestos abatement is being performed, the contractor will receive payment for each unit of material that is effectively removed or managed. This method incentivizes efficiency, as the payment correlates directly with the tangible work completed, allowing for greater transparency in billing and facilitating easier calculations for both the contractor and the client. This is especially important in jobs involving hazardous materials, where precise measurements and accountability are critical for safety and compliance. In contrast, other methods of determining payment, such as those based on labor, project duration, or complexity, do not align with the core structure of a unit-pricing contract, which focuses specifically on the quantifiable outcomes of the abatement process.