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.
McAllen Texas Construction Contract Cost Plus or Fixed Fee
Category:
State:
Texas
City:
McAllen
Control #:
TX-00462
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Texas Construction Contract Cost Plus Or Fixed Fee?
If you have previously employed our service, Log In to your account and retrieve the McAllen Texas Construction Contract Cost Plus or Fixed Fee onto your device by clicking the Download button. Ensure your subscription is valid. If not, renew it as per your payment plan.
If this is your initial interaction with our service, follow these straightforward steps to acquire your document.
You have continuous access to every document you have purchased: you can find it in your profile within the My documents menu whenever you wish to use it again. Utilize the US Legal Forms service to effortlessly locate and store any template for your personal or business requirements!
- Ensure you’ve located a suitable document. Review the description and utilize the Preview option, if accessible, to confirm if it fits your requirements. If it does not satisfy you, use the Search tab above to find the appropriate one.
- Purchase the template. Click the Buy Now button and select a monthly or yearly subscription plan.
- Create an account and make a payment. Use your credit card information or the PayPal option to finalize the purchase.
- Acquire your McAllen Texas Construction Contract Cost Plus or Fixed Fee. Choose the file format for your document and save it to your device.
- Fill out your sample. Print it or use professional online editors to complete and sign it electronically.
Form popularity
FAQ
Cost-plus contracts are generally used if the party drawing up the contract has budgetary restrictions or if the overall scope of the work can't be properly estimated in advance. In construction, cost-plus contracts are drawn up so contractors can be reimbursed for almost every expense actually incurred on a project.
Cost-plus contracts are majorly found in the construction industry where the contractor is reimbursed the number of expenditures made for the contract and fixed percentage fees of the contract cost as the profit made on the contract.
A: As an example, a cost-plus contract may establish that the total estimated cost of a building project is $10 million plus a fixed fee of $1.5 million, roughly 15% of the total cost, as the contractor's profit. So the total expense to the buyer would be approximately $11.5 million ?the cost plus the fee.
A: As an example, a cost-plus contract may establish that the total estimated cost of a building project is $10 million plus a fixed fee of $1.5 million, roughly 15% of the total cost, as the contractor's profit. So the total expense to the buyer would be approximately $11.5 million ?the cost plus the fee.
Budget: A fixed-price contract is just that: fixed. The agreed-on price at the beginning of the project is the price at the end. Conversely, a cost-plus contract estimates a project's costs but doesn't set the final price until the project is completed.
Cost-plus pricing is also known as markup pricing. It's a pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.
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.
Cost plus fixed fee contracts can be used when both the contractor and the owner agree that the contractor is entitled to a fee in addition to the project expenses.
Cost Plus contract has its own advantages and disadvantages. This type of contract is used when you want to reduce the risks and have your expenses covered on a job. But here you won't get reimbursed for any and every expenses.
