Oklahoma Construction Contract Cost Plus or Fixed Fee
About this form
The Construction Contract Cost Plus or Fixed Fee is a legal document that outlines the terms and conditions for a construction project. This form allows for a payment arrangement either based on costs incurred plus a fee or a fixed total fee. Unlike standard construction contracts, this form includes essential sections regarding work scope, site insurance, and warranty, ensuring compliance with Oklahoma laws.
Key parts of this document
- Work site details including the property location for construction.
- Permits: outlines the contractor's responsibility for securing necessary permits.
- Soil conditions: specifies that the contractor is not liable for unforeseen soil issues.
- Insurance requirements for general liability and workers' compensation.
- Change order procedures for modifications in work scope and cost adjustments.
- Conditions for contract termination due to damage or destruction of the project.
Common use cases
This form is typically used when hiring a contractor for construction projects where the payment structure can be either a cost-plus arrangement or a fixed fee. It's ideal for projects that may require flexibility in scope and costs due to changing conditions. Consider using this form if you anticipate potential alterations in work or if you prefer clear guidelines for liability and responsibilities.
Who can use this document
- Homeowners or property owners intending to engage a contractor for construction.
- Contractors seeking a clear contract with defined payment structures.
- Project managers involved in overseeing construction agreements.
How to complete this form
- Identify the parties involved: fill in the names and addresses of the owner and contractor.
- Specify the work site: indicate the exact location of the project.
- Detail the scope of work: provide a clear description of the construction work to be performed.
- Enter payment terms: choose between a cost-plus or fixed fee arrangement as applicable.
- Obtain necessary signatures: ensure both parties sign the contract to validate the agreement.
Does this form need to be notarized?
In most cases, this form does not require notarization. However, some jurisdictions or signing circumstances might. US Legal Forms offers online notarization powered by Notarize, accessible 24/7 for a quick, remote process.
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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 specify the work site clearly, leading to potential disputes.
- Neglecting to obtain necessary permits before starting work.
- Not documenting change orders, which can cause confusion over costs and responsibilities.
- Ignoring warranties and insurance requirements, which may expose parties to liability.
Why use this form online
- Convenience of downloading and filling out the form at your own pace.
- Editability ensures that you can make necessary changes before finalizing.
- Reliability from using a document drafted by licensed attorneys familiar with legal standards.
Legal use & context
- The contract outlines responsibilities and protects the interests of both parties.
- It serves as a legally binding agreement upon signature by both the owner and contractor.
- Enforceable in Oklahoma, ensuring both parties adhere to the terms established.
Main things to remember
- The form is essential for establishing clear construction agreements with specified payment terms.
- It protects both the owner and contractor through well-defined responsibilities and liabilities.
- Using this form ensures compliance with Oklahoma state laws regarding construction contracts.
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FAQ
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.
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 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.
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 is a type of contract where the payment amount does not depend on resources used or time expended. This is opposed to a cost-plus contract, which is intended to cover the costs with additional profit made.
Cost Plus Contract Disadvantages For the buyer, the major disadvantage of this type of contract is the risk for paying much more than expected on materials. The contractor also has less incentive to be efficient since they will profit either way.
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.
