Cost Plus Contract In Simple Words In Chicago
Category:
State:
Multi-State
City:
Chicago
Control #:
US-00462
Format:
Word;
Rich Text
Instant download
Description
A Cost Plus Contract is a type of construction agreement where the owner pays the contractor for the actual costs of materials and labor, plus an additional fee for their services. This contract is useful in Chicago as it provides flexibility, allowing adjustments to be made for unforeseen expenses during the project. Key features include the ability for the owner to authorize changes in the scope of work through written 'Change Orders,' ensuring clear communication regarding costs. Filling out the form requires the contractor and owner to specify details such as project scope, work site, and the total additional fee structure. This form can benefit attorneys, partners, owners, associates, paralegals, and legal assistants by providing a clear framework for cost management and accountability throughout the construction process. The form also outlines responsibilities such as obtaining permits, managing insurance, and addressing any soil condition issues at the work site. Overall, it aids in minimizing disputes and ensuring that everyone understands their financial obligations.
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FAQ
The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead. Note that there are a few exceptions, since some service industries do not have direct material costs, and some automated manufacturing companies do not have direct labor costs.
