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Louisiana Construction Contract Cost Plus or Fixed Fee

Plus Fixed Fee

Name: Louisiana Construction Contract Cost Plus or Fixed Fee
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.87 (344 reviews)

Category:

Louisiana Construction - Contractors

State:

Louisiana

Control #:

LA-00462

Format:

Instant download

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Description Cost Plus Construction Contract Template

This form is a Construction Contract that may be executed with either a cost plus or fixed fee payment arrangement. The form contains the following additional subject matters and complies with the laws of the State of Louisiana: scope of work, work site, warranty and insurance.

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How to fill out Contract Fixed Fee?

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Contract Plus Fixed Other Form Names

Contract Cost Plus Cost Plus Construction Agreement Construction Contract Cost Plus Louisiana Construction Contract Cost Plus Fee Contract Contract Cost Fixed Cost Plus Fixed

Louisiana Construction Plus FAQ

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%.

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.

A cost-plus basis for a contract for work to be done is one in which the buyer agrees to pay the seller or contractor all the cost plus a profit. All vessels were to be built on a cost-plus basis.

A Cost-Based Pricing Example Suppose that a company sells a product for $1, and that $1 includes all the costs that go into making and marketing the product. The company may then add a percentage on top of that $1 as the "plus" part of cost-plus pricing. That portion of the price is the company's profit.

A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract.

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.

Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.

A cost-plus contract is an agreement to reimburse a company for expenses incurred plus a specific amount of profit, usually stated as a percentage of the contract's full price.

Unlike a fixed-cost construction contract, a cost-plus construction agreement is a contract in which the owner pays the contractor the actual costs of the materials and labor plus an additional negotiated fee or percentage over that amount.

Plus Fixed Fee

Description Cost Plus Construction Contract Template

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