Cost Plus Contract In Simple Words In Michigan
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Description
A Cost Plus Contract is a type of agreement where the Owner pays the Contractor for the actual costs of labor and materials, plus an additional amount for services. This simple approach is often used in Michigan construction projects. Key features of the contract include the scope of work, work site description, and provisions for permits and soil conditions. The Contractor must maintain insurance and provide necessary surveys and title opinions before starting work. Changes to the scope of work require a written change order, and any additional costs will be the Owner's responsibility. For filling out the contract, the parties need to specify payment terms, including how costs will be calculated and any late payment fees. This contract is particularly useful for Attorneys, Partners, Owners, Associates, Paralegals, and Legal Assistants involved in construction projects, as it provides a clear structure for managing costs and responsibilities.
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The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead. Note that there are a few exceptions, since some service industries do not have direct material costs, and some automated manufacturing companies do not have direct labor costs.
