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Construction & EngineeringID: kb-con-008

Cost-Plus Contract

Contract where the owner pays for actual costs plus a fee.

Added: October 18, 2025
Applicable: Universal

Detailed Explanation

In a Cost-Plus Contract, the owner pays for the actual cost of materials, labor, and equipment, plus a negotiated fee (profit and overhead) to the contractor. This is often used when the scope of work is not fully defined at the start of the project.

Tags

#reimbursement#flexible#undefined scope#fee

Applicable Countries