Contractor License Practice Exam

What type of estimate is quoted per cubic yard for excavation projects?

1. Detailed estimate

2. Unit price estimate

3. Fixed price estimate

4. Analogous estimate

The correct answer is: Unit price estimate

For excavation projects, the type of estimate that is quoted per cubic yard is known as a unit price estimate. This approach is particularly useful in construction and excavation work because it allows for a straightforward calculation based on the quantity of material or work involved. When dealing with excavation, costs are often broken down into per unit measurements, such as cubic yards, enabling contractors to provide clear and quantifiable pricing based on the actual volume of ground that needs to be excavated. A unit price estimate is advantageous for both contractors and clients. It helps ensure transparency in pricing by relating costs directly to the amount of earth moved. Additionally, it facilitates adjustments in the final price if the scope of the excavation varies, as the rate per cubic yard remains constant while the total cost adjusts based on the final quantity of materials. In contrast, other types of estimates, such as detailed estimates, involve comprehensive assessments of labor, materials, overhead, and profit margins, which do not focus directly on the per-unit pricing structure. Fixed price estimates set a total cost for a project regardless of changes in scope, and analogous estimates utilize historical data from similar projects to forecast costs. These methods do not provide the same level of granularity that a unit price estimate offers, especially in contexts like excavation