A Cost Plus Agreement is an arrangement between a customer and vendor where the vendor agrees to cover all material, labor, and other related costs for a project, plus an agreed-upon fee. This fee is typically listed as a percentage of the total contract cost, and it covers any other non-material expenses that go into providing the goods/services in question. In essence, a Cost Plus Agreement ensures that the customer pays only for the actual costs associated with their project – no more and no less. This type of agreement also provides clarity and transparency when it comes to costs, ensuring that everyone involved walks away satisfied with the results.