Cost Plus Contract Meaning With Example In Arizona
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Description
A cost plus contract is a type of construction agreement where the owner agrees to pay the contractor for the actual costs of materials and labor, plus an additional fee for the contractor's services. In Arizona, this can be beneficial in situations where project costs are uncertain or may fluctuate due to unforeseen conditions. An example of this would be a homeowner financing the construction of a custom home where the total costs remain flexible as the project evolves. Key features of the form include defined scope of work, work site details, permit responsibilities, insurance requirements, and procedures for making changes to the scope of work. Filling out this form involves specifying the project details and costs explicitly, while editing may involve documenting any changes through written change orders. This form is useful for attorneys, partners, owners, associates, paralegals, and legal assistants as it provides a clear framework for construction agreements, outlines responsibilities, and protects the interests of all parties involved in the construction process.
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