Cost Plus Contract Meaning With Example In Wake
Category:
State:
Multi-State
County:
Wake
Control #:
US-00462
Format:
Word;
Rich Text
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Description
The Cost Plus Contract is a legal agreement where the owner agrees to pay the contractor for the actual costs incurred for materials, plus an additional fixed fee for services. This type of contract is particularly useful in construction projects where costs can fluctuate, and it allows for flexibility in budgeting. For example, in Wake, if a contractor incurs unexpected expenses due to material price increases, these costs are covered, making it easier for both parties to manage financial risks. Key features of this contract include a detailed scope of work, provisions for changes via change orders, and clear payment terms. Filling and editing this form involves completing sections on the project scope, work site, payment structure, and ensuring all parties sign and date the contract. This form is especially beneficial for attorneys, partners, owners, associates, paralegals, and legal assistants involved in construction law, as it provides a structured approach to managing costs and expectations in construction agreements.
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FAQ
Job costing is used for short-term, smaller-scale projects with distinct costs for each job, common in manufacturing or services. In contrast, contract costing is for larger, long-term projects, like construction or civil engineering, where costs are tracked over the life of an extensive contract.
