Cost Plus Contract For Contractors In Arizona
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Description
The Cost Plus Contract for Contractors in Arizona provides a clear framework for agreements between contractors and owners concerning construction projects. This contract outlines the contractor's responsibilities in terms of labor and materials, and it specifies the project scope, work site, and applicable permits, ensuring compliance with local regulations. Notably, the cost plus aspect allows owners to pay for actual construction costs plus a specified fee for the contractor's services, creating transparency in financial transactions. The document also details provisions for handling changes in project scope, emphasizing that any modifications must be done through a written Change Order, which can lead to adjustments in project costs. The contract includes important insurance clauses to protect both parties, detailing the contractor's obligation to maintain appropriate coverage. Owners are encouraged to understand their responsibilities regarding soil conditions and site work, as these can incur additional costs. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants as it serves as a legal safeguard, clarifies expectations, and can help mitigate disputes through clear terms and conditions.
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Protect Yourself when Working with Custom Home Builders Only work with a licensed contractor. Get the contract in writing. Avoid “lump sum” bids. Talk to several contractors. Tie payments to deliverables. Get proof of payment to suppliers.
A total Transaction Privilege (Sales) Tax rate of 8.35%, (6.35% State and County, 2.00% Prescott), is imposed on the gross income of any person engaging in Construction Contracting. If tax has been neither separately charged nor separately collected, factoring of tax is allowed in computing taxable income.
