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Cost Plus Building Contract

oboloo Glossary

Cost Plus Building Contract

A cost plus building contract is a type of construction contract in which the contractor agrees to build something at a fixed price, plus an additional amount for any associated costs. This additional amount may include items such as materials, labour, taxes and other expenses. The benefits of this type of contract are that it allows for more control by the contracted party because they can manage their costs more closely and accurately. Additionally, if the contract stipulates that certain conditions surrounding the project will be reimbursed or covered, then these conditions can be easily monitored and accounted for. Ultimately, cost plus contracts allow for both parties to be in agreement on how much is being paid and how much is expected to be received, making them a great option for businesses who need to ensure they are getting the best value for their money.

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