Which statement best describes CCDC 4?

CCDC 4, also known as the "Unit Price Contract," is specifically designed to detail agreements when construction is priced per unit of work. This format is suitable for projects where the quantities of work are uncertain, allowing for flexibility in payment as work progresses. The stipulated fee per unit greatly simplifies the negotiation of costs, as it provides a clear framework for calculating final payment based on the actual work completed.

Understanding this, it becomes clear why the other options do not accurately describe CCDC 4. The first option, which suggests a stipulated price for the entire construction, aligns more with fixed-price contracts, while the third option regarding open-end costs with limited fees does not reflect the structured unit pricing of CCDC 4. Finally, the option stating it is exclusively for advisory services completely mischaracterizes CCDC 4, which is fundamentally a contracting format and not limited to advisory tasks.