Unit Price AdjustmentsAndrew McBride
June 21, 2010 — 284 views
Contracts based on unit prices typically contain provisions for adjustment of those prices if actual quantities differ substantially from those estimated. These so-called “variations in quantities” clauses afford some measure of protection to both the contractor and the owner if quantity estimates are off and the actual costs incurred are either higher or lower than anticipated. It is important that the parties to the contract understand and follow the procedures set forth in such provisions or they may not be able to enjoy that protection. Pavers, Inc. v. Board of Regents of the University of Nebraska, 276 Neb. 559, 755 N.W.2d 400 (2008), provides a cautionary tale of what can happen if such a contractual procedure is not followed.