Cost Plus Construction With Example

State:
Florida
Control #:
FL-00462
Format:
Word; 
Rich Text
Instant download

Description

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.

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  • Preview Construction Contract Cost Plus or Fixed Fee
  • Preview Construction Contract Cost Plus or Fixed Fee
  • Preview Construction Contract Cost Plus or Fixed Fee
  • Preview Construction Contract Cost Plus or Fixed Fee
  • Preview Construction Contract Cost Plus or Fixed Fee
  • Preview Construction Contract Cost Plus or Fixed Fee

How to fill out Florida Construction Contract Cost Plus Or Fixed Fee?

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FAQ

If a product costs $100.00, they will set the price at cost + (Cost * 15%), which would be $115.00. Within the cost-plus system, there are different types of pricing strategies. However, because cost-plus is very popular in government contracting, the government allows only three types of cost-plus contracts.

A: As an example, a cost-plus contract may establish that the total estimated cost of a building project is $10 million plus a fixed fee of $1.5 million, roughly 15% of the total cost, as the contractor's profit. So the total expense to the buyer would be approximately $11.5 million ?the cost plus the fee.

plus contract is an agreement to reimburse a company for expenses incurred plus a specific amount of profit, usually stated as a percentage of the contract's full price.

If the service contract is for something that is necessary for the day-to-day running of the business, it is likely to come under operating expenses. This could include contracts for things like office cleaning, IT support, or security.

A: As an example, a cost-plus contract may establish that the total estimated cost of a building project is $10 million plus a fixed fee of $1.5 million, roughly 15% of the total cost, as the contractor's profit. So the total expense to the buyer would be approximately $11.5 million ?the cost plus the fee.

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Cost Plus Construction With Example