Cost Plus Contract Meaning With Example In Collin
Category:
State:
Multi-State
County:
Collin
Control #:
US-00462
Format:
Word;
Rich Text
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Description
A cost plus contract is a construction agreement wherein the owner pays the contractor for the actual costs incurred in materials and labor, in addition to a fixed fee for their services. For example, in Collin, if the contractor's costs amount to $50,000, and the agreed-upon fixed fee is $10,000, the owner would pay a total of $60,000. Key features of this form include detailed provisions for the scope of work, the work site, necessary permits, and insurance requirements. The contractor is also allowed to charge for additional work due to unforeseen soil conditions or changes requested by the owner. Filling out the form involves specifying the project details, defining the scope of work, and determining payment structures. This contract is particularly useful for attorneys, partners, and owners involved in construction projects, as it provides clear guidelines for costs and responsibilities. Associates, paralegals, and legal assistants benefit from understanding this form to manage contractual obligations and ensure compliance with legal standards.
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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.
Contract Costs means the estimated costs of the extension, conversion, or modification of service.
