Cost Plus Contract Meaning With Example In Georgia
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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. In Georgia, this means that if a contractor spends $50,000 on materials and labor, the owner might pay an additional $10,000 as their fee, totaling $60,000. This contract is particularly useful in situations where project scopes may change, as it allows flexibility in pricing based on incurred costs. Key features of this form include defined scope of work, provisions for permits, insurance, and conditions regarding soil and site issues. Users should fill in the specific project details and the agreed-upon fee clearly. Additionally, it's essential to outline payment procedures and any change orders in writing. This form is beneficial for attorneys drafting construction agreements, partners overseeing projects, owners managing costs, associates and paralegals assisting in preparations, and legal assistants ensuring compliance with contractual obligations.
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