Unit Price in Public Procurement 2026

Definition: The unit price is the price offered in the bill of quantities or price sheet for a defined unit of quantity of a tendered work item, which, multiplied by the actual quantity performed, results in the total price for that item.

Last updated: January 2026 · Legal basis: VOB/B § 2, BVergG 2018, ÖNORM B 2110

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What is the unit price?

The unit price is the basic pricing format for the award of construction works and often also for supply and service contracts where the exact quantity of the work to be performed is not yet definitively known at the time of the tender. In the bill of quantities (BoQ), the contracting authority sets out a description of the work and an estimated or expected quantity (preset value) for each work item. For each item, the bidder enters the unit price per unit of quantity (e.g. per hour, per square metre, per piece, per linear metre).

The total price of an item is calculated as: unit price × quantity = item amount

The sum of all item amounts gives the bid total.

Unit price vs. lump-sum price

The unit price contrasts with the lump-sum price, where a fixed price is agreed for the overall performance, regardless of the actual quantity performed.

Feature	Unit price	Lump-sum price
Quantity fluctuations	Billed by actual quantity	Fixed price, no quantity adjustment
Planning risk	With the contracting authority	With the contractor
Use	Construction works, quantity-dependent works	Clearly defined overall works
Supplementary order for quantity increase	In principle billable	Only in case of substantial deviation

Significance in public construction procurement

In the award of construction works under VOB (Germany) and ÖNORM B 2110 (Austria), the unit price is the dominant pricing format. Under § 2 VOB/B, remuneration is billed at unit prices unless a different agreement (lump-sum contract) has been concluded. If the actual quantity performed deviates by more than 10 % from the quantity provided for in the contract, a claim for price adjustment exists under § 2(3) VOB/B.

Calculation basis

Unit prices must include all costs necessary for performing the work, including labour costs, material costs, equipment costs, site overheads, general business overheads, and profit. A bidder who deliberately calculates individual unit prices speculatively low (speculative calculation) risks having their bid excluded due to non-viable prices.

Related terms

• Tender
• Specification of works

FAQ

What happens if the quantity actually performed deviates significantly from the estimate? For construction works under VOB/B, both contracting parties have a claim for price adjustment in the event of quantity deviations of more than 10 %. The details are governed by the contract and § 2(3) VOB/B.

Can a contracting authority reject unrealistically low unit prices? Yes. Contracting authorities are required to clarify abnormally low bids (§ 60 VgV). If it turns out that individual unit prices are calculated speculatively and the overall bid is not economically viable, the bid can be excluded.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.