A unit price is the cost for a specified quantity of work, material, or service—price per square metre, per linear metre, per tonne, per hour, or other relevant unit. Construction contracts often use unit pricing for variable quantities, where exact amounts aren't known in advance. For example, excavation might be priced per cubic metre, allowing payment based on actual quantities. Unit price contracts adjust total cost as actual quantities are measured during construction. This approach shares risk between parties—if quantities increase, contractors receive more; if they decrease, owners pay less. Unit pricing requires clear specifications defining what each unit includes. Municipal contracts frequently use unit pricing for infrastructure work where soil conditions or existing conditions create quantity uncertainty.