Washington Construction Contract Cost Plus or Fixed Fee
Overview of this form
The Construction Contract Cost Plus or Fixed Fee is a legal document that outlines an agreement between a property owner and a contractor for construction services. This form provides flexibility with payment arrangements, offering options for both cost plus and fixed fee agreements. It contains essential clauses regarding the scope of work, work site, insurance, and warranty provisions, making it an important tool for any construction project.
Key components of this form
- Work site details
- Permit acquisition responsibilities
- Soil condition disclaimers
- Insurance requirements
- Provisions for changes to the scope of work
- Contract price arrangements for cost plus or fixed fee
- Late payment terms and penalties
- Warranty limitations
Situations where this form applies
This form is essential when entering into a construction agreement where the payment method can vary. Whether you are a homeowner planning a renovation or a builder taking on a new project, this form helps set clear expectations about payment structures, work scope, and responsibilities. Use this contract to protect your interests and ensure compliance with local regulations.
Who should use this form
- Property owners looking to hire contractors for construction projects
- Contractors offering services on a cost plus or fixed fee basis
- Developers managing multiple construction projects
- Homeowners involved in significant renovations
Steps to complete this form
- Identify the parties involved in the contract, including the owner and contractor.
- Specify the location of the work site where the project will be carried out.
- Outline the scope of work and any additional requirements.
- Choose the payment arrangement: cost plus or fixed fee, and enter the relevant details.
- Include clauses related to permits, insurance, and warranties as necessary.
- Ensure both parties sign and date the contract to make it legally binding.
Notarization requirements for this form
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to define the scope of work clearly, leading to misunderstandings.
- Not including detailed payment terms, which might cause disputes later.
- Overlooking the need for permits and insurance documentation.
- Signing the contract without reviewing all clauses thoroughly.
Benefits of completing this form online
- Convenient access to editable templates that can be personalized.
- Time-saving downloadable format for immediate use.
- Reliable content drafted by licensed attorneys to ensure legal compliance.
- Easy navigation and quick completion with guided steps.
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FAQ
A cost-plus contract, also known as a cost-reimbursement contract, is a form of contract wherein the contractor is paid for all of their construction-related expenses. Plus, the contractor is paid a specific agreed-upon amount for profit.
Disadvantages of cost-plus fixed-fee contracts may include: The final, overall cost may not be very clear at the beginning of negotiations. May require additional administration or oversight of the project to ensure that the contractor is factoring in the various cost factors.
A fixed price contract sets a total price for all construction-related activities during a project. Many fixed price contracts include benefits for early termination and penalties for a late termination to give the contractors incentives to ensure the project is completed on time and within scope.
In the cost plus a percentage arrangement, the contractor bills the client for his direct costs for labor, materials, and subs, plus a percentage to cover his overhead and profit. Markups might range anywhere from 10% to 25%.
