What method of renumeration is based on project construction cost per square meter?

The method of remuneration that is based on project construction cost per square meter is known as the Unit Cost Method. This approach calculates the total compensation for the contractor based on predefined units of work, such as costs per square meter for construction projects.

Using the Unit Cost Method allows clients and contractors to have a clearer understanding of costs as they relate directly to the size of the project. As the total area of the project increases, the total cost is adjusted accordingly based on the established unit rates. This method is particularly advantageous in projects where the scale can vary, enabling accurate estimation and cost control based on tangible measurements of work.

In contrast, other methods like Value-based Pricing focus on the perceived value to the client rather than specific measurements or costs. The Lump Sum or Fixed Fee method concentrates on a total fixed price for the entire project, which might not reflect variations in construction areas. The Time basis method charges based on the amount of time spent on a project rather than the quantity of work completed. Each of these approaches has distinct advantages and is suitable for different project circumstances, but for cost per square meter, the Unit Cost Method is the most appropriate choice.