Cost Plus Contract Meaning With Example In Allegheny
Category:
State:
Multi-State
County:
Allegheny
Control #:
US-00462
Format:
Word;
Rich Text
Instant download
Description
A cost plus contract is a type of construction agreement where the owner agrees to pay the contractor for all incurred costs plus an additional fee. For example, in Allegheny, a contractor might charge for actual material costs, adding a fixed sum as a service fee. This form is designed to clarify the scope of work, work site location, and responsibilities regarding permits and insurance. Key features include provisions for changes in scope and a detailed payment structure. Users such as attorneys, partners, owners, associates, paralegals, and legal assistants will find it useful when negotiating terms or ensuring that all aspects of the contract are adhered to. Filling instructions include specifying costs, describing the project scope, and outlining payment timelines. This form is ideal for projects requiring flexibility in costs and where owners want to ensure quality through contractor oversight.
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FAQ
As a general rule, if the owner hired whoever drafted the construction plans, or if whoever drafted the faulty plans is an employee or agent of the owner, it is the owner who will be liable for defective plans.
