A Cost Plus Construction Contract is a type of contract in which a contractor is compensated for all costs related to the construction project, plus an additional percentage or amount as a fee. This allows the contractor to cover their full costs while also making a profit. The contractor pays all costs associated with the project, and then charges the customer a predetermined fee on top of their costs. In this way, both parties are ensured a fair compensation for their work. Furthermore, this type of agreement can help to ensure that all parties remain in open communication throughout the construction process to avoid any potential misunderstandings or delays.