North Dakota Construction Contract Cost Plus or Fixed Fee
What is this form?
This Construction Contract is a legal document that allows parties to establish the terms of a construction project under either a cost plus or fixed fee payment arrangement. Unlike fixed-price contracts, cost plus contracts enable payment based on actual costs plus an agreed-upon fee, providing flexibility for fluctuating project expenses. This form is specifically tailored to comply with the laws of North Dakota, ensuring that all terms related to the scope of work, warranties, and insurance are legally sound and enforceable.
Main sections of this form
- Work site: Identifies the location of the construction project.
- Permits: Outlines the contractor's responsibility for obtaining necessary permits.
- Soil conditions: Specifies contractorâs non-responsibility for site soil conditions.
- Insurance: Details required insurance coverage for the contractor.
- Changes to scope of work: Describes how modifications can be made through written change orders.
- Warranty: Limits the contractorâs warranty to one year for workmanship defects.
Situations where this form applies
This Construction Contract should be used when an owner wishes to hire a contractor to undertake a construction project and wants to establish a clear and comprehensive agreement on payment terms. It is particularly useful when project costs may vary due to unforeseen circumstances, allowing for a flexible arrangement to accommodate potential changes in expenses.
Who this form is for
- Homeowners or property owners looking to start a construction project
- Contractors providing construction services under a cost plus or fixed fee arrangement
- Parties requiring a formal agreement to protect their rights and clarify responsibilities in construction projects
How to prepare this document
- Identify the parties involved by entering their names and details at the beginning of the contract.
- Specify the work site address where the construction will occur.
- Determine and enter the agreed payment structure, whether cost plus or fixed fee.
- Include all relevant details regarding insurance coverage and warranties applicable to the contract.
- Have both parties review and sign the contract, ensuring all sections are duly completed.
Does this document require notarization?
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
- Leaving key sections blank, such as payment terms or project scope.
- Not specifying the work site clearly, leading to misunderstandings.
- Failing to include necessary permits required for the project.
- Overlooking the need for written change orders for modifications.
Why use this form online
- Convenient download and immediate access to essential contract templates.
- Edit and customize the form according to specific project needs.
- Reliability of forms drafted by licensed attorneys to ensure legal compliance.
Legal use & context
- This construction contract serves as a binding agreement, establishing the terms under which work will be performed.
- Utilizing this form helps prevent disputes by clearly stating the responsibilities of each party.
- Maintaining a written contract is crucial for enforceability and legal protection.
What to keep in mind
- This Construction Contract supports both cost plus and fixed fee arrangements.
- Key sections address permits, insurance, and changes in the scope of work.
- It is important to complete all sections accurately to avoid misunderstandings.
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FAQ
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.
Determine your COGS (cost of goods sold). For example $40 . Find out your gross profit by subtracting the cost from the revenue. Divide profit by COGS. Express it as a percentage: 0.25 100 = 25% . This is how to find markup... or simply use our markup calculator!
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 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.
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.
A cost-plus fixed fee contract is a specific type of contract wherein the contractor is paid for the normal expenses for a project, plus an additional fixed fee for their services.
A cost plus percentage of cost contract or CPPC is a cost reimbursement contract containing some element that obligates the non-state entity to pay the contractor an amount, undetermined at the time the contract was made and to be incurred in the future, based on a percentage of future costs.