This form is a Construction Contract that may be executed with either a cost plus or fixed fee payment arrangement. The form contains the following additional subject matters and complies with the laws of the State of Florida: scope of work, work site, warranty and insurance.
A construction cost plus contract template is a legally binding agreement between a client and a contractor, outlining the terms and conditions of a construction project. This type of contract is commonly used in the construction industry when the total project cost is uncertain or subject to change. The construction cost plus contract template provides flexibility for both the client and the contractor, allowing for adjustments and additions to the project scope and cost as needed. The construction cost plus contract template includes key clauses and provisions that govern various aspects of the project. It typically outlines the payment structure, which is based on the actual costs incurred by the contractor plus an agreed-upon fee or percentage for overhead and profit. This payment structure ensures that the client pays for the actual expenses associated with the project, promoting transparency and accountability. Furthermore, the construction cost plus contract template specifies the responsibilities of both parties, including the scope of work, timelines, and quality standards. It may also include provisions for change orders, dispute resolution mechanisms, and termination clauses. This comprehensive contract template helps establish clear expectations and minimizes the potential for misunderstandings or disputes during the construction process. Different types of construction cost plus contract templates exist that cater to specific construction scenarios or project types. Some common variations include: 1. Fixed-Fee Construction Cost Plus Contract Template: This type of template sets a predetermined fee or percentage as the contractor's compensation, which remains fixed throughout the project. It provides stability for the client by establishing a predictable cost structure. 2. Cost-Plus-Fee Construction Cost Plus Contract Template: In this template, the contractor is reimbursed for the actual project costs and is paid an additional fee on top of those costs. The fee can be a fixed percentage or a fixed amount payable for the services rendered. 3. Guaranteed Maximum Price (GMP) Construction Cost Plus Contract Template: This type of template sets a cap on the total project cost, ensuring that the contractor's compensation does not exceed the agreed-upon maximum. Any savings achieved during the project may be shared between the client and the contractor, providing an incentive for cost-effective construction practices. 4. Time and Materials Construction Cost Plus Contract Template: This template is used when projects involve uncertain scopes, making it difficult to estimate the total cost accurately. The contract specifies an hourly or daily rate for labor and materials, allowing for flexibility in adjusting the project scope and cost as it progresses. In conclusion, a construction cost plus contract template is a crucial tool for establishing clear guidelines and expectations between clients and contractors. By utilizing a suitable template, both parties can mitigate risks, ensure transparency, and achieve successful project outcomes.
