A Cost Plus Construction Agreement is an agreement between a contractor and a client in which the contractor is paid an agreed-upon amount for the cost of materials and labor plus an additional fee for overhead and profit. The contractor is essentially reimbursed for any costs incurred during the construction process, allowing both parties to have greater control over the budget and timeline. This type of contract also incentivizes the contractor to complete the project on time and within budget as any overruns are their own financial responsibility. With this approach, clients can rest assured that they’re getting the best value for their money.