A general contractor cost plus percentage is an agreement between a contractor and a builder whereby the contractor is paid their costs, plus an agreed-upon percentage of those costs as payment. It’s an incentive-based method of contracting whereby the builder aligns their interests with the contractor’s in ensuring the project is completed on time and on budget. This can be beneficial for large projects where both parties are unsure of potential unforeseen expenses or complexities that may arise during the construction process. In this arrangement, both parties share in any risk associated with the project, making it a popular choice among many builders today.