Cost Plus Contract Meaning With Example In Sacramento

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

Description

A Cost Plus Contract is a type of construction agreement in which the Owner agrees to pay the Contractor for the actual costs of materials plus an additional agreed-upon fee for labor or services. This contract is particularly useful in Sacramento, where construction costs can fluctuate due to various factors. For instance, if a Contractor spends $50,000 on materials and the agreed fee is $10,000, the Owner pays a total of $60,000. Key features of this form include clear delineation of work scope, responsibility for obtaining permits, provisions for insurance, and detailed guidelines on managing changes to the project scope. Users, including attorneys, partners, owners, associates, paralegals, and legal assistants, should follow instructions for accurately filling out the form, ensuring all necessary details are completed. Changes to the scope must be documented via written change orders to maintain clarity on expenses. This contract is practical for those engaging in construction projects where costs may vary, providing a flexible structure to accommodate unexpected expenses.