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Unit Price Adjustment Provisions in Construction Contracts


Understand the issues involved in unit price contracts from the procurement phase of a project through potential disputes.

Construction projects can utilize a variety of pricing arrangements for contracts and change orders. One of the more common pricing methodologies is the unit price arrangement. Unit pricing is considered a fair and equitable way to establish the cost of certain types of work, and because it is all-encompassing, is relatively easy to administer during the project. However, unit price agreements are not without risk and can expose parties to unforeseen consequences. An understanding of the legal issues involved in unit price contracts from the procurement phase of a project through potential disputes can help owners, design professionals, contractors, subcontractors and their accountants and lawyers mitigate these potential risks. This topic will examine unit pricing in detail, discuss the advantages and disadvantages as compared to other construction pricing arrangements and highlight issues that may arise from the bidding stage through contract close out and the resolution of claims and disputes.



Lisa Lombardo

Lisa Lombardo

Gibbons P.C.

  • Promoted to director in the Gibbons P.C. Commercial & Criminal Litigation Department in January 2019
  • Has successfully litigated matters before the state and federal courts of New Jersey and New York, as well as the American Arbitration Association, with a focus on construction matters
  • Her experience in commercial litigation and construction litigation is unique in that she represents both plaintiffs and defendants
  • She served as co-lead counsel in a three-year long arbitration representing a major university in a claim involving extensive and complex design and construction defects, which resulted in a multimillion-dollar award in our client’s favor and the arbitrator striking down a limitation of liability clause
  • Unlike most litigators in the construction arena, she has experience drafting and negotiating contracts, and worked with owners, contractors, subcontractors, and designers on contracts for projects involving academic centers, public schools, laboratory facilities, office buildings, energy facilities, public/private projects and building additions of varying sizes
  • Selected to the Morris/Essex Health & Life magazine’s “Essex County Top Lawyers” list, construction, 2018
  • Can be contacted at 973-596-4481 or [email protected]
Damian Santomauro

Damian Santomauro

Gibbons P.C.

  • Director at Gibbons P.C. in Newark, New Jersey
  • An experienced construction litigator who appears in federal and State courts and alternative dispute proceedings on behalf of private and public clients
  • Advises designers, contractors and owners on issues that arise during projects, from procurement to completion
  • Team leader of the firm’s construction law and litigation practice
  • Served as senior counsel to the Governor of New Jersey, interacting with State Departments, Commissioners, and the Office of the Attorney General
  • Selected to the New Jersey Super Lawyers Rising Stars list for Construction Litigation
  • Can be contacted at 973-596-4586 or [email protected]

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