When contracting, the parties may agree that payment will be linked to the volume of work done or materials supplied, which will be paid for at an agreed unit rate. The quantities may be unknown, but the parties agree to fix the price. As an example, a builder may be commissioned to dig a trench that will be 1 metre deep x 1 metre wide. While the length of the trench is unknown at this stage, the parties may agree that the trench will cost $100 per metre dug. See also Contract, Time and Materials.
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Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
