Cost Plus Contract Meaning With Example In Massachusetts

• Category: Construction - Contractors
• State: Multi-State
• Control #: US-00462
• Format: Word; Rich Text

Description

A Cost Plus Contract is an agreement where the owner pays the contractor for the actual costs of materials, labor, and a fee for the contractor's services. This type of contract is useful in Massachusetts for projects where the scope or costs may change during construction. For example, if a homeowner hires a contractor to build a custom residence but later decides on additional features, the cost plus contract allows for easy adjustments to the project expenses. Key features include outlining the scope of work, specifying the work site, and detailing insurance requirements. Additionally, it includes provisions for managing changes to the project scope through written Change Orders. Users filling out this contract should clearly indicate the actual costs and contractor fees, ensuring all changes are documented. This contract is particularly relevant for attorneys, partners, owners, associates, paralegals, and legal assistants involved in construction projects, as it provides a flexible and transparent framework for managing costs and responsibilities during the construction process.