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Cost Plus Work

oboloo Glossary

Cost Plus Work

Cost Plus Work is a business model that allows for the payment of additional fees based on certain predetermined costs. In essence, it’s an arrangement that includes an agreed-upon “cost plus” fee in the contract, which is paid to cover the direct cost of labor and materials used in the production of goods or services. This type of arrangement makes it easier to control overhead costs while also allowing businesses to maximize their revenue. It also helps eliminate risk when working with unfamiliar clients, as all upfront costs are factored into the agreement. With Cost Plus Work, businesses can rest assured that they will receive a fair compensation for the work performed.

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