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A cost-plus contract is an agreement to reimburse a company for expenses plus a specific amount of profit, usually stated as a percentage of the contract’s full price.
A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, plus additional payment to allow for risk and incentive sharing. [1]
A cost-plus contract is a construction agreement that requires reimbursement for project costs as well as a markup that covers the contractor’s overhead and profit. In other words, the name is a short-hand way of remembering what the contract covers: project costs plus contractor markup.
A cost-plus contract, also known as a cost-reimbursement contract, is a legally binding agreement where a client agrees to reimburse a contractor for project expenses and additional fees on top of a proportionate profit.
Cost-plus contracts can help construction firms control how fluctuating costs affect their profitability. This guide explains how they work and differ from fixed price contracts.
A cost-plus contract is one in which the contractor is reimbursed for the actual costs of a project plus a profit. Cost-plus contracts reduce contractor risk by separating profit from direct and indirect project expenses.
Guide to what is Cost-Plus Contract. Here we discuss Components, types, and examples of Cost-Plus Contract along with advantages and disadvantages.
Definition. A cost-plus contract is an agreement where a contractor is reimbursed for all their allowable costs incurred while performing a project, plus an additional amount for profit, typically expressed as a percentage of the costs.
A cost-plus contract is a reimbursement agreement where a contractor is paid for expenses incurred plus a specific amount of profit. These contracts are commonly utilized in construction and other industries, offering flexibility and risk-sharing.
Learn from this article what a cost plus contract is. Know when to include an escalation clause, which determines how price changes are handled.