Build a Working Capital Strategy that Strengthens Your Financial Future:
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Cost-Plus Contract

Cost-Plus Contract

What is a Cost-Plus Contract?

A contract where the owner pays the contractor for actual costs plus an additional fee or percentage for profit.

More In-depth Definition of Cost-plus Contract

A Cost-Plus Contract is a type of construction agreement where the contractor is reimbursed for the actual costs of labor, materials, and overhead, plus an agreed-upon fee or percentage for profit. This arrangement allows for flexibility in project scope and design changes but requires detailed accounting and regular reporting to manage costs

Example of a Cost-Plus Contract

Agreement where costs are reimbursed plus a percentage for profit.