Cost-Plus Contract
/ˈkɒstˌplʌs ˈkɒntrækt/
Definitions
- (n.) A contractual agreement in which a contractor is paid for all construction-related expenses plus an additional payment for profit.
The project was completed under a cost-plus contract to ensure all materials and labor were covered with a reasonable profit.
Forms
- cost-plus contracts
Related terms
See also
Commentary
Cost-plus contracts provide flexibility in covering actual costs but require careful monitoring to prevent cost overruns.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.