Cost Plus Contract Meaning With Example In Minnesota
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Description
A Cost Plus Contract is a type of agreement where the Owner covers the actual costs incurred by the Contractor for materials and labor, plus an additional agreed-upon fee. For example, in Minnesota, a contractor might be compensated for the actual costs of building materials plus a fixed rate for their labor, which offers transparency regarding costs. This contract is beneficial for projects where costs can fluctuate significantly. Key features include clear sections outlining the scope of work, permits, insurance, and changes to the contract. It also emphasizes that any unforeseen expenses will be borne by the Owner. Filling instructions require careful attention to detail, particularly regarding the specific costs and any modifications. This form is particularly useful for attorneys managing construction projects, partners and owners planning residential builds, as well as associates and paralegals involved in contract preparation. Legal assistants can also use this form to assist in compliance and regulatory matters.
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