Cost Plus Contract Meaning With Example In Virginia
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Description
A cost plus contract is a type of agreement where the owner agrees to pay the contractor for the actual costs incurred in the project plus an additional fee for services. This type of contract is beneficial in Virginia when project costs may fluctuate or are difficult to estimate at the outset. For example, if a homeowner hires a contractor to build a custom home, the expenses for materials and labor will be covered, ensuring that any unforeseen expenses are managed effectively. Key features of this form include clear specifications of the scope of work, conditions regarding changes to the project, and details about insurance and warranty coverage. Users must carefully fill out sections detailing actual costs and the contractor's additional fee. The form is especially useful for attorneys, partners, owners, associates, paralegals, and legal assistants in navigating construction agreements and managing risks effectively. Proper editing ensures that all terms reflect current conditions and agreements, reducing potential disputes.
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FAQ
As a general rule, if the owner hired whoever drafted the construction plans, or if whoever drafted the faulty plans is an employee or agent of the owner, it is the owner who will be liable for defective plans.
