Cost Plus Contract In Construction In California
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Description
The Cost Plus Contract in construction in California is a legal document that outlines the agreement between the Contractor and Owner regarding the construction project. This contract allows the Contractor to charge the Owner for the actual costs of materials plus an additional fee for services rendered. Key features include a detailed scope of work, the necessity for permits, and provisions for changes to the scope of work via written Change Orders. It also clearly delineates responsibilities related to soil conditions and insurance requirements. Filling and editing instructions emphasize clarity, ensuring all project specifications and financial terms are explicitly defined to avoid misunderstandings. This document is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants involved in construction projects, as it provides a structured framework for agreements, protects the interests of both parties, and ensures compliance with local regulations. It serves as both a reference for project requirements and a guide for resolving disputes related to cost adjustments and obligations.
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The CCA specifically handles documents affecting the contractor to sub-contractor relationships while the CCDC documents typically handle contractor to owner relationships. Contracts Covered: CCA 1.
CCDC contracts are ubiquitous in the construction industry. They are used for all manner of different project types and sizes, so much so that familiarity with these documents is almost becoming required to do business in Ontario's construction industry. There are currently around 14 types of CCDC format contracts.
