Cost Plus Building Contract Template With Word
Definition and meaning
A cost plus building contract template is a legal document that defines the terms under which a contractor will be paid for a construction project. Unlike fixed-price contracts, which set a specific fee for the job, cost plus contracts allow the contractor to charge for actual costs incurred plus an additional fee, which is typically a percentage or a fixed amount. This type of contract is beneficial in situations where project specifications are not fully known at the start, allowing flexibility for both the owner and the contractor.
How to complete a form
To successfully complete a cost plus building contract template, follow these steps:
- Begin by filling in the names and addresses of both the contractor and the owner at the beginning of the contract.
- Clearly define the scope of work to be performed, referencing any attached drawings or specifications.
- Specify the work site location to avoid any confusion regarding the construction area.
- Set the timeline for project commencement and completion, making sure to account for potential delays.
- Detail the payment structure, indicating how costs will be calculated and the additional fee to be charged.
- Include any necessary permits that the contractor must apply for and list insurance requirements.
- Have both parties sign the contract to confirm agreement on all terms.
Who should use this form
This form is ideal for homeowners or property owners who are planning a construction project but prefer a flexible payment structure that accommodates changes in project costs. It is also useful for contractors who wish to cover their actual expenses while providing a certain level of profit margin, making it suitable for various building and renovation projects.
Key components of the form
The key components of a cost plus building contract template include:
- Scope of work: This section outlines the specific tasks and responsibilities of the contractor.
- Payment terms: Clearly stated methods for calculating costs and additional fees.
- Timeline: A detailed schedule indicating when work will begin and be substantially completed.
- Permits and insurance: Requirements for obtaining necessary permits and maintaining appropriate insurance coverage.
- Change orders: Procedures for making changes to the contract terms or scope of work.
Benefits of using this form online
Utilizing a cost plus building contract template online offers several advantages:
- Accessibility: Users can easily download, fill out, and save the form from the convenience of their own devices.
- Customization: Online templates often allow for easy editing and customization to fit specific project needs.
- Cost-effective: Many online resources offer templates for free or at a low cost, providing significant savings.
- Legal assurance: Templates are typically drafted by licensed attorneys, ensuring they meet legal standards and requirements.
How to fill out Utah Construction Contract Cost Plus Or Fixed Fee?
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FAQ
What Should Be in a Construction Contract?Identifying/Contact Information.Title and Description of the Project.Projected Timeline and Completion Date.Cost Estimate and Payment Schedule.Stop-Work Clause and Stop-Payment Clause.Act of God Clause.Change Order Agreement.Warranty.More items...
coordinated CostPlus contract can save the Owner a lot of money. For instance, on a Fixed Price contract, if the Contractor is able to save money by finding a better material price, or using laborsaving strategies, those savings revert to the Contractor.
Elements of a Construction ContractName of contractor and contact information.Name of homeowner and contact information.Describe property in legal terms.List attachments to the contract.The cost.Failure of homeowner to obtain financing.Description of the work and the completion date.Right to stop the project.More items...
plus contract is one in which the contractor is paid for all of a project's expenses plus an additional fee for the job. The additional fee is intended to be the contractor's profit.
The two main variations of this approach to bidding are cost-plus-a-percentage and cost-plus-a-fixed-fee. Cost-plus-a-percentage. In this scenario, the contractor bills the client for his direct costs for labor, materials, and subs, plus a percentage to cover his overhead and profit.
