Cost Plus Contract Meaning With Example In Ohio

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

Description

A Cost Plus Contract in Ohio is an agreement where the Owner compensates the Contractor for the actual cost of materials plus an additional fee. This kind of contract is useful when the total costs are uncertain at the project’s onset. For instance, if a Contractor estimates that the total cost for building a home will be $200,000 but encounters additional expenses, the Owner will cover these costs along with a previously agreed upon fee for the Contractor's services. Key features include a clear Scope of Work, which outlines the responsibilities of both parties, and provisions for Change Orders where the Owner can request alterations to the project. It also details obligations regarding permits, soil conditions, and insurance coverage required by the Contractor. The form must be filled out with precise information about the project and parties involved, ensuring both parties understand their rights and duties. Given its structure, this form is particularly useful for attorneys, partners, owners, associates, paralegals, and legal assistants who require clarity and flexibility in construction dealings, aiming to protect both the Contractor's and Owner's interests.