Construction Contract Cost Plus With Example In California

• Category: Construction - Contractors
• State: Multi-State
• Control #: US-00462
• Format: Word; Rich Text

Description

The Construction Contract Cost Plus is a legal document used in California to define the agreement between a contractor and an owner for a construction project. This contract specifies that the owner will pay the contractor for the actual costs of materials incurred, plus an additional agreed-upon fee for the contractor's services. Key features of the form include a detailed scope of work, provisions for permits, insurance requirements, and stipulations regarding changes to the scope of work through written change orders. The form also outlines conditions related to late payments and warranties, ensuring that both parties understand their responsibilities. For example, in California, if the project's actual costs amount to $50,000 and the agreed fee is $10,000, the owner would pay a total of $60,000. This contract is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who are involved in construction projects as it helps clarify expectations and legal obligations, minimizing disputes and ensuring compliance with local regulations.