Cost Plus Construction Contracts involve the hiring of a contractor to complete a construction project, with additional fees and charges added on top of their negotiated rate. This type of contract allows for greater flexibility in terms of budgeting, as well as more control over the expenses incurred during the construction process. It also incentivizes contractors to find ways to reduce costs or add value in order to increase their overall profits. With Cost Plus Contracts, it’s important to ensure that all fees are clearly defined upfront, as well as negotiate ongoing calculations of changed orders and liabilities. Every company should consider the advantages and disadvantages of this type of contract before undertaking any construction projects.