What type of contract specifies payment for each unit of work without stating the total contract amount?

Unit-price contracts specify payment for each unit of work done without providing a total contract amount upfront. This means that the contract may contain an agreement on the costs associated with individual units of work (such as per square meter of flooring, per ton of asphalt, or per linear foot of piping), allowing for flexibility in billing as the project progresses. The final contract amount will depend on the actual quantity of work completed and can vary based on the project's needs and scope, making this type of contract particularly useful in projects where the total quantity of work is uncertain at the outset.

In the context of construction and engineering, this approach helps manage risk for both the contractor and client, as it allows for adjustments based on actual work performed. As such, it is commonly used in projects with variable scopes or where quantities are difficult to estimate in advance.