Cost Plus Contract Meaning With Example In Nevada
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Description
A Cost Plus contract is a type of construction agreement where the Owner pays the Contractor for the actual costs of materials plus a predetermined fee for their services. This contract model is beneficial in scenarios where project costs may fluctuate, providing flexibility to both parties. For example, in Nevada, if a contractor spends $50,000 on materials and has a service fee of $15,000, the total payment from the Owner would be $65,000. Key features include clear specifications of the scope of work, provisions for changes via written change orders, and stipulations regarding payment schedules. Users should fill in essential details such as the project scope, location, and payment structure clearly to avoid discrepancies. This form is particularly useful for Attorneys, Owners, and Associates who are navigating complex project agreements, ensuring that costs are transparent and legally documented. Paralegals and Legal Assistants can aid in drafting, reviewing, and editing the contract to meet legal standards and client needs.
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FAQ
As a general rule, if the owner hired whoever drafted the construction plans, or if whoever drafted the faulty plans is an employee or agent of the owner, it is the owner who will be liable for defective plans.
