Cost Plus Contract Meaning With Example In Chicago
Category:
State:
Multi-State
City:
Chicago
Control #:
US-00462
Format:
Word;
Rich Text
Instant download
Description
A cost plus contract is an agreement where the owner pays the contractor for the actual costs incurred, plus an additional fee for the contractor's services. This type of contract is beneficial in situations where project costs are difficult to estimate upfront. For example, in Chicago, a contractor might charge for the materials needed to build a new residence and then add a fixed fee for their labor. Key features of this form include clear definitions of the scope of work, conditions for changes, and payment structure, which is crucial for all parties involved. Filling in the form requires accurate details of the project and costs, while editing requires careful attention to ensure compliance with changes made during construction. This form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who seek to clarify and formalize agreements in construction projects, minimizing disputes and enhancing transparency.
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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.
