Cost Plus Contract Meaning With Example In Illinois
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Description
A Cost Plus Contract is a type of construction agreement where the Owner agrees to pay the Contractor for the actual costs incurred for materials and labor, along with an additional fee for the Contractor's services. For example, in Illinois, if a Contractor estimates that the materials will cost $50,000 and they charge an additional fee of $10,000, the total payment from the Owner would amount to $60,000. Key features of this contract include detailed scope of work, provisions for permits, and insurance requirements. The contract also includes clauses on changes to the scope of work, specifying that any alterations must be documented through written change orders. Filling and editing the form involves clearly defining project specifics such as site location and payment terms, as well as ensuring all parties comprehend their responsibilities. This form is particularly useful for Attorneys, Partners, Owners, Associates, Paralegals, and Legal Assistants as it outlines legal protections, responsibilities, and expectations in construction projects, fostering transparency and anticipating additional expenses that may arise due to project modifications.
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