Why unit prices are prepared and how they are usedSolutionBe

Why unit prices are prepared and how they are used?

Solution

Before going to know about why unit prices are prepared and how they are used we need to know what is meant by unit price.so we can define unit price as a price for materilas or food stuffs etc stated or shown as the cost per unit, as per pound, per cubic yard, per metric ton etc.

As we all are civil engineers and as per our field concern we prepare unit prices for every material that we use in construction in order to estimate or calculate the cost or budget that required to complete the project or any construction which we undertake.It is very important aspect for every construction work which we need to work on because without unit prices we cannot know how much cost our project would need in order for completion.

As mentioned above unit prices are used for estimating the amount so they are used in this process for example if we consider that we are costructing a shopping mall it requires lot of raw materials such as cement ,concrete, bricks iron etc so we first need to know what is the unit price for this raw materials and we need to estimate the quantity that required for the construction of these materials and then we use unit prices for estimation or calculation of total budget.As of now Concrete costs an average of$98 per cubic yard according to NRMCA.iron ore costs at present is 77.46 dollars per metric ton. similarly unit prices for different materials can be calculated and used .