Cost Plus Contract With Example In Kings
Category:
State:
Multi-State
County:
Kings
Control #:
US-00462
Format:
Word;
Rich Text
Instant download
Description
The Cost Plus Contract, as detailed in the document, is an agreement between a contractor and an owner for a construction project where the owner pays the contractor for actual construction costs plus an additional fee. This type of contract is particularly useful when project costs are uncertain or when there is a need for flexibility in the scope of work. In Kings, an example scenario might involve a homeowner who wishes to build an extension without knowing the exact costs of materials and labor. The contractor's fee is specified as a defined sum added to the actual costs incurred. Key features of this form include provisions for permits, insurance, and handling changes to the scope of work through written change orders. The contract also addresses late payments and warranties on workmanship. Attorneys, partners, owners, associates, paralegals, and legal assistants can utilize this form to ensure clear agreements regarding cost management and liability. Filling and editing instructions emphasize the necessity of providing personalized project details and signing from both parties to validate the contract.
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FAQ
A contract account is an accounting tool used to track financial transactions, such as revenue and expenses, for reporting and budgeting purposes. It helps a business better understand and report direct costs, which are expenses specifically attributable to the project, in an efficient and transparent manner.
Examples of Contract Costing A bridge is needed over a river at a particular site, and a client gives a contractor this assignment. A contractor opens separate accounts for each contract and numbers them separately to identify any profit or loss made at each contract.
