Though not as common as the fixed-price contract, this type of deal is negotiated if you re uncertain of the type of work needed. In a fixed-price contract, one price covers the whole site assessment or cleanup from beginning to end. This includes person hours, equipment hours, and all fees and services. You control costs by letting the contractor know that you will not pay for work beyond the scope of work unless you specifically agree to it. You need to be careful that contractors don t take shortcuts in completing work.
Profit is included in the unit price.
An advantage to the unit-price contract is that you are not required to pay for uncompleted tasks or inefficiencies on the part of the contractor. As with fixed-price contracts, you need to be careful that contractors don t take short cuts in completing work. The lowest bid may appear cheapest, but you might end up paying for expensive mistakes or redoing work that wasn t done right the first time. Select an experienced contractor who provides high-quality work. Contact your State UST program about their experience with contractors.