Cost Plus Contract Meaning With Example In San Bernardino
Category:
State:
Multi-State
County:
San Bernardino
Control #:
US-00462
Format:
Word;
Rich Text
Instant download
Description
A Cost Plus Contract is a type of construction agreement where the owner pays the contractor for the actual costs of materials plus an additional fee for services, which covers overhead and profit. For example, in San Bernardino, a homeowner might enter into this agreement to ensure flexibility in budget due to changing project requirements. Key features of this form include detailed descriptions of work scope, site conditions, and payment terms. It instructs users to outline costs and any changes through written 'Change Orders.' Attorneys, partners, owners, associates, paralegals, and legal assistants can utilize this form to create transparent agreements that protect all parties involved. It emphasizes the importance of obtaining necessary permits and the contractor's responsibilities regarding insurance and site surveys. Additionally, late payment fees and warranty clauses provide further assurance and accountability. This form is particularly beneficial for those looking to manage costs effectively while allowing the contractor some flexibility in project execution.
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