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 Texas: scope of work, work site, warranty and insurance.
Texas Construction Contract Cost Plus or Fixed Fee
Instant download
Description
Free preview
How to fill out Texas Construction Contract Cost Plus Or Fixed Fee?
Get access to quality Texas Construction Contract Cost Plus or Fixed Fee forms online with US Legal Forms. Avoid days of wasted time browsing the internet and lost money on documents that aren’t updated. US Legal Forms provides you with a solution to exactly that. Get over 85,000 state-specific legal and tax samples that you can download and complete in clicks within the Forms library.
To get the sample, log in to your account and click on Download button. The file is going to be stored in two places: on your device and in the My Forms folder.
For people who don’t have a subscription yet, have a look at our how-guide listed below to make getting started simpler:
- Find out if the Texas Construction Contract Cost Plus or Fixed Fee you’re considering is suitable for your state.
- View the sample using the Preview option and browse its description.
- Visit the subscription page by clicking Buy Now.
- Select the subscription plan to go on to sign up.
- Pay out by card or PayPal to complete making an account.
- Pick a favored format to download the document (.pdf or .docx).
You can now open the Texas Construction Contract Cost Plus or Fixed Fee sample and fill it out online or print it and get it done by hand. Think about giving the document to your legal counsel to make sure everything is filled in correctly. If you make a error, print and complete application once again (once you’ve made an account all documents you save is reusable). Create your US Legal Forms account now and access more samples.
Form popularity
FAQ
They each allow for the reimbursement of costs as well as an additional amount for profit: Cost-plus award fee contracts allow the contractor to be awarded a fee usually for good performance. Cost-plus fixed-fee contracts cover both direct and indirect costs, in addition to a fixed fee.
Disadvantages of fixed-price Therefore the biggest issue is usually around project scope and change requests. Lack of flexibility. A fixed-price project has a defined scope (requirements). As the cost cannot change, the scope of work is much less flexible.
A cost-plus contract is an agreement that specifies the client will pay the contractor for construction expenses detailed in the contract, plus an additional percentage to provide the contractor with a profit.
Advantages of Cost-Plus Contract to the Contractor: (i) There is no risk of loss arising from changing prices, wrong estimates and underestimated quotation.(ii) It provides an automatic or ready escalation clause, so that increase in cost is automatically adjusted and recovered; (iii) There is no bargaining problem.
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.
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%.
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 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. That's the plus!
Cost-plus-fixed-fee tends to me more advantageous to the buyer as opposed to the seller as it caps the fee and the fee will not swell or grow based on the future expansion or fluctuations of the budget. However, it also can protect the seller because, in the event the budget tightens, it provides a fixed fee.