Cost Plus In Construction In Philadelphia
Category:
State:
Multi-State
County:
Philadelphia
Control #:
US-00462
Format:
Word;
Rich Text
Instant download
Description
The Construction Contract outlines the agreement between a Contractor and Owner for a building project, specifically focusing on the cost plus construction method in Philadelphia. This form includes essential elements such as the scope of work, work site, permits, and insurance obligations. A key feature is the Cost Plus section, where the Owner agrees to pay the Contractor for actual material costs plus an additional fee, promoting transparency in expenses. Users are instructed to fill in specific details like project scope and payment terms, ensuring clarity and mutual understanding. Important considerations include handling changes to the project's scope via written Change Orders and addressing late payments with associated penalties. The form benefits attorneys, partners, owners, associates, paralegals, and legal assistants by providing a structured framework for negotiations, enhancing accountability, and ensuring compliance with local regulations in Philadelphia's construction industry.
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FAQ
Generally, labor accounts for anywhere from 20-35% of total construction expenses, while materials account for 65-80%.
The percentage of completion method is a revenue recognition accounting concept that evaluates how to realize revenue periodically over a long-term project or contract. Revenue, expenses, and gross profit are recognized each period based on the percentage of work completed or costs incurred.
