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The Cost Plus Construction Contract is a legal agreement between a contractor and an owner outlining the terms for construction services in Pennsylvania. This form allows the owner to pay the contractor for the actual costs of materials plus an additional fee for services rendered. Key features include defining the scope of work, the work site, and responsibilities regarding permits, soil conditions, insurance provisions, and changes to the scope of work through written change orders. The contract includes a specific payment structure and outlines late payment terms. It is particularly useful for parties who desire flexibility in costs and wish to cover additional expenses incurred during the construction process. Target audiences such as attorneys, partners, owners, associates, paralegals, and legal assistants can benefit from this form by ensuring that contractual agreements comply with local laws and regulations, thus protecting all parties' interests and mitigating potential disputes.
Pennsylvania sales tax does not apply to construction activities that are made under contract and involve the permanent attachment of tangible personal property to realty.
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