Owners do not realize how unfair unit pricing can be for both them and the contractor. The cost of work is not simply a unit price multiplied by the quantity, but a more complex function that considers the size of the project, schedule, and other factors into the formula.
Unit prices should be removed from the bid documents except for work which cannot be reasonably quantified such as piling, caissons and rock and associated earthwork. Typically, smaller quantities cost more per unit compared to a larger quantity. So, depending on how the contractor bid the unit prices and the actual quantity on the project it is possible for the contactor to make more or less profit.
If unit prices are required, those for additional work and for deleted work should be separated. There are additional expenses that the contractor should be allowed to recoup on deleted work such as the project administration and the effect on the schedule.
Unit prices needed should be negotiated with the apparent low bidder after the scope of changes is better known, through the change order process.
If a unit price is not necessary, then it should be left off the bid documents.
