A Cost Plus Contract is a business agreement between a buyer and a seller where the seller agrees to provide all the services, materials and supplies necessary for a project along with the associated labor costs. The cost of the project will be paid for by the buyer, plus an additional fee for profit or overhead. This means that the buyer agrees to pay for the costs of the project plus an additional fee for the seller’s profit. In essence, this allows both parties to have some control over their respective financial outcomes. This type of contract also offers flexibility, as it can be renegotiated at any point in time if either party desires.