In cost planning, Unit Prices are most beneficial when which condition exists?

• A. Quantities are uncertain
• B. There are no change orders
• C. There are fixed quantities
• D. There are few substitutions

Answer: (A)

Unit prices give cost based on actual quantities measured in the field, using a fixed per-unit rate for each work item. This approach shines when the scope isn’t well defined or is expected to vary, because you don’t lock in a total price upfront. As quantities become known, you multiply by the unit rates to determine the final amount, making it easier to handle unknowns, changes, and later adjustments without renegotiating every item.

If quantities are fixed, you already know the total and a lump-sum or measured contract is usually simpler and more straightforward. If there are no change orders, the flexibility of unit prices isn’t needed since the scope isn’t changing. If substitutions are few, unit-price pricing doesn’t address that decision directly, since substitutions relate more to product choices than to quantity-based pricing.