A cost-plus contract is an agreement made between a project owner and a contractor to reimburse the contractor for expenses incurred andto add a specific, additional payment for their profit. This profit is usually stated as a percentage of the contract’s full price. These types of contracts ...
That said, a cost-plus contract is not a blank check from a project owner to a general contractor. Generally, the contract will include a clause that requires the contractor to provide the owner with a good faith estimate for the total cost of a project. Additionally, the contractor will ...
in which the contractor is paid a specified percentage over and above construction costs.This percentage may be pure profit to the contractor,or it may be the contractor's gross compensation from which must be paid general overhead expenses such as clerical help, phone lines, and general busines...