What type of contract is based on stated bid quantities with payment for actual quantities placed?

The type of contract that is based on stated bid quantities with payment for actual quantities placed is a Unit Price contract. In this contract structure, the contractor provides a price per unit for specific work items or tasks, which allows for flexibility in the total cost, as the final payment correlates with the actual quantities of work completed. This means that if the quantity of work varies from the initial estimate provided in the bid, the contractor will be compensated based on the actual units completed rather than a fixed total amount.

This arrangement is particularly beneficial in construction projects where the exact amount of work that needs to be done is uncertain at the outset, such as excavation or paving projects. It allows contractors to manage costs effectively while also giving clients transparency regarding the pricing of individual components of the work.

Other types of contracts, such as Lump Sum, involve a fixed price for the entire project based on the contractor's bid, regardless of the actual quantities required. Cost Plus contracts cover the cost of work plus an additional fee, typically a percentage of the project cost, making them distinctly different than a Unit Price contract. Design-Build contracts combine design and construction into a single contract, which does not fit the model of being based on per unit pricing for separate quantities.