Glossary

Unit price (in a bill of quantities)

A unit price (Einheitspreis, EP) is the price for one unit of a bill of quantities position, such as one metre or one piece. Quantity times unit price gives the item total, and the item totals add up to the bid total.

In short

  • In US federal procurement, FAR 52.211-18 “Variation in Estimated Quantity” applies when the actual quantity of a unit-priced item varies by more than 15 percent above or below the estimated quantity. An equitable adjustment is then made on demand of either party, based only on the costs caused by the variation above 115 or below 85 percent.

  • In Germany, construction work is usually awarded at unit prices (Einheitspreisvertrag, VOB/A 2019 § 4 Abs. 1 Nr. 1) for parts whose quantity the client states by measure, weight or number of pieces. Those quantities come from the material takeoff. A lump sum (Pauschalvertrag, § 4 Abs. 1 Nr. 2) only fits where the work is exactly determined and no change is expected.

  • In a GAEB X84 bid, each item carries the quantity (Qty), the unit (QU), the unit price (UP) and the item total (IT).

Example

Position 01.01.0010, HT waste pipe DN 110, 48.5 m at 18.40 per m gives 892.40. If 52 m are installed, the deviation is about 7 %, so 18.40 per m still applies. The German band for this is 10 % of the contract quantity (VOB/B § 2 Abs. 3), so the contract unit price holds.

What to watch for

  • The unit price covers material and labour for one unit. A supplier’s price per pack or per bar has to be converted to the LV unit first, see unit of measure.

  • Within the 10 % band of VOB/B § 2 Abs. 3, or the 15 % band of the FAR clause, the contract unit price is not adjusted. The quantity risk sits in the unit price inside that band.

  • A Bedarfsposition without total also needs a unit price.

  • Your unit prices end up next to the competitors’ in a bid tabulation, position by position.

Not to be confused with

  • Lump sum (Pauschalpreis): one price for the whole work, not for each unit.

  • Item total (Gesamtbetrag): quantity times unit price.

  • A supplier’s list price: the price of an article. It is not the price of a position in a bill of quantities.

Item with unit price and item total in a GAEB X84 bid (simplified)
<Item RNoPart="0010">
  <Qty>48.5</Qty><QU>m</QU>
  <UP>18.40</UP><IT>892.40</IT>
  <!-- HT-Abwasserrohr DN 110 -->
</Item>