What type of estimating involves calculating project costs based on individual unit prices?

Unit price estimating is a method that breaks down a project into individual tasks or components and assigns a specific cost to each unit of work. This is particularly useful in construction projects where quantities can change or where various tasks may differ significantly in cost. By determining an individual cost per unit, contractors can calculate total project costs even when the exact quantities are not known at the outset. This method not only provides flexibility in pricing as quantities are finalized but also allows for detailed tracking of costs on a per-unit basis, making it advantageous for both the contractor and the client.

The other estimating methods are fundamentally different in approach. Lump sum estimating involves providing a single fixed price for the entire project, which doesn't break down costs into individual components, limiting transparency regarding specific costs. Cost-plus estimating allows reimbursement of the actual costs incurred plus a fee, lacking the per-unit pricing structure. Fixed fee estimating establishes a pre-agreed fee for services without focusing on the calculation of costs per unit, which limits the estimation to a total figure rather than a detailed breakdown.