A Cost Plus Fee Contract is a type of business agreement in which a buyer agrees to pay for all the costs associated with a project plus an additional fee. This fee is typically expressed as a percentage or fixed amount, and it varies depending on the nature of the project. This extra fee allows the contractor to cover their overhead and make some profit, while still making sure the customer gets a competitive price. With this type of contract, both parties can benefit from a fair and transparent agreement that aligns incentives and encourages collaboration.