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Advantages and Disadvantages of Using Cost-Plus ContractsThey eliminate some risk for the contractor. They allow the focus to shift from the overall cost to the quality of work being done. They cover all the expenses related to the project, so there are no surprises.
A cost plus contract is an arrangement under which a contractor is reimbursement for all costs incurred on a project, plus a profit that is typically calculated as a percentage of the costs incurred.