What does the unit price method require determining?

The unit price method requires determining all of the costs for each unit of construction because it is a pricing strategy used in construction contracts. This method focuses on breaking down the project into individual units, allowing for a detailed understanding of costs associated with each separate component or activity. By specifying a price per unit of measure (such as cubic yards, linear feet, or square footage), it enables contractors to provide accurate estimates and adjustments as quantities change during the project lifecycle.

This approach is particularly useful in projects where quantities may vary, as it allows contractors to adjust their final costs based on actual units used without needing a complete re-estimate of the overall project cost each time. It reflects an understanding of how different materials, labor, and overhead contribute to the price of completing specific units of work, ensuring that pricing is transparent and based on measurable factors. Thus, determining the costs for each unit is crucial for creating an accurate and fair bidding and accounting process in construction projects.