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.
Cost plus construction with ceiling is a type of construction contract that includes a predetermined maximum limit or ceiling on the final cost of the project. This contract type provides flexibility to the contractor while giving the owner the assurance that the total cost will not exceed a certain amount. Keywords: cost plus construction, construction contract, ceiling, maximum limit, project cost, flexibility, contractor, owner, total cost, assurance. There are two main types of Cost plus construction with ceiling: 1. Cost Plus with Guaranteed Maximum Price (GMP): This type of contract specifies a maximum price, or ceiling, for the project. The contractor is responsible for completing the construction within the agreed-upon budget. If the actual costs exceed the maximum price, the contractor is responsible for covering the additional expenses. However, if the actual costs are lower than the maximum price, the owner benefits from the savings. This contract type offers a balance between cost control for the owner and flexibility for the contractor. 2. Cost Plus with Not-to-Exceed Price: In this type of contract, the contractor is responsible for billing the actual costs incurred during the construction process. However, there is a predetermined maximum amount, or ceiling, beyond which the contractor cannot charge the owner. If the actual costs exceed the ceiling, the contractor absorbs the extra expenses. Unlike a GMP contract, any savings resulting from the actual costs being lower than the ceiling are typically not passed on to the owner. This contract type provides the owner with transparency and limits the financial risk. Cost plus construction with ceiling offers several advantages. Firstly, it allows the contractor to have more flexibility in managing unforeseen circumstances and changes during the construction process. Secondly, it provides the owner with a sense of security, knowing that the total cost will not exceed a certain limit. Lastly, this type of contract promotes a collaborative relationship between the contractor and the owner, as both parties share the risks and rewards associated with the project's actual costs. Overall, Cost plus construction with ceiling is a beneficial contract type that provides both flexibility and cost control, ensuring that the project is completed within a predetermined budget.
