Cost Plus Contract Meaning With Example In Philadelphia

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

Description

A cost plus contract is an agreement where the Owner pays the Contractor for the actual costs incurred plus an additional fee. In Philadelphia, for example, if a Contractor spends $100,000 on materials and labor, the Owner would reimburse those costs plus a predetermined fee for the Contractor's services. This type of contract provides flexibility for changes in scope, making it valuable for projects with uncertain or complex requirements. Key features include a defined scope of work, permissions for changes through written change orders, and a structure for the Contractor's fee based on actual costs plus a fixed sum. Users must clearly indicate the job specifics and ensure both parties understand the insurance requirements outlined in the contract. The form is particularly useful for attorneys, partners, and owners involved in construction projects, as well as associates, paralegals, and legal assistants who may need to draft or review such contracts for compliance and risk management. Filling out the form requires careful attention to project details and cost estimates, while editing may involve updating costs or scope changes as necessary.