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 with labor cost is a legal agreement between a client and a contractor for a construction project. This type of contract is commonly used in the construction industry to outline the terms and conditions of a project where the contractor will be reimbursed for the actual costs incurred, plus an agreed-upon percentage or fee for their services. The construction cost plus contract template with labor cost provides a detailed breakdown of how the costs are calculated, ensuring transparency and clarity for both parties involved. It ensures that the client only pays for the actual expenses and materials used in the construction, preventing any potential disputes or misunderstandings. Different types of construction cost plus contract templates with labor cost include: 1. Fixed Fee Percentage Template: This type of contract template specifies a fixed percentage fee that the contractor will receive on top of the project's actual costs. For example, if the fixed fee percentage is set at 10%, and the actual costs of the project amount to $100,000, the contractor's fee will be $10,000. 2. Cost-Plus-Fee Template: This template outlines the contractor's fee separate from the other costs incurred during the construction project. The fee is usually determined based on an hourly rate, an agreed-upon lump sum, or a combination of both. 3. Guaranteed Maximum Price (GMP) Template: A GMP contract template sets a maximum limit on the project's total cost, including both labor and materials. If the actual costs exceed the agreed-upon maximum, the contractor will be responsible for covering the additional expenses. 4. Cost-Plus-Guaranteed-Fee Template: This type of contract template combines the cost-plus method with the guaranteed fee structure. The contractor is reimbursed for the actual costs incurred during the project and receives a guaranteed fee on top of it. Regardless of the specific type of construction cost plus contract template with labor cost used, it is crucial to include essential details such as project scope, payment terms, change order procedures, dispute resolution, and termination clauses. These elements ensure that both parties are protected and have a clear understanding of their responsibilities and liabilities throughout the construction process.
