Professional contract template for transparent cost-based construction projects. Perfect for large projects where cost transparency and detailed documentation are essential.
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COST PLUS CONTRACT
This Cost Plus Contract ("Agreement") is entered into on 10/10/2025 between:
CONTRACTOR:
Phone:
Email:
License #:
CLIENT:
Phone:
Email:
PROJECT DETAILS:
Project Location:
Project Type: Construction
Description:
TERMS AND CONDITIONS:
1. SCOPE OF WORK
The Contractor agrees to provide labor, materials, equipment, and services on a cost plus fee basis for the project described above. Work will be performed in accordance with industry standards and applicable codes.
2. COST PLUS FEE STRUCTURE
The Client agrees to reimburse the Contractor for all actual project costs plus a contractor fee of 10% of total project costs.
Project costs include:
- All labor costs at actual wages paid
- Materials at actual cost with receipts
- Equipment rental at actual rates
- Subcontractor costs at actual amounts paid
- Permits and inspection fees
- Other direct project expenses
3. MAXIMUM CONTRACT AMOUNT
No maximum cost limit specified
Any costs exceeding this amount require written authorization from the Client.
4. PAYMENT TERMS
Invoice Frequency: Monthly
Payment Terms: Net 15
Retention: 5%
All invoices will include detailed cost breakdowns with supporting documentation.
5. TIME FOR PERFORMANCE
Work shall commence on
Estimated Duration:
6. COST DOCUMENTATION AND TRANSPARENCY
Contractor shall maintain detailed records of all project costs including:
- Daily labor reports with hours and wage rates
- Material purchase receipts and delivery tickets
- Equipment rental agreements and invoices
- Subcontractor invoices and payment records
- All other project-related expenses
7. AUDIT RIGHTS
Client has the right to audit all project cost records during normal business hours with reasonable notice.
8. EXPENSE REPORTING
Contractor will provide detailed monthly cost reports showing all expenses by category with supporting documentation.
9. PERMITS AND APPROVALS
Responsibility for permits: Contractor
10. INSURANCE
Contractor shall maintain insurance coverage of $ throughout the project duration.
11. WARRANTY
Contractor warrants all work for a period of 1 Year from the date of completion.
12. CHANGE ORDERS
All changes to the work scope must be documented in writing and signed by both parties. Changes may affect the project timeline and maximum cost limit.
13. COST CONTROLS
Both parties agree to work collaboratively to control project costs while maintaining quality standards. Regular cost reviews will be conducted to ensure the project remains within budget expectations.
14. DISPUTE RESOLUTION
Disputes shall be resolved through Mediation.
15. GENERAL PROVISIONS
This contract represents the entire agreement between the parties and may only be modified in writing signed by both parties.
SIGNATURES:
Contractor: ___________________________ Date: ___________
Client: ___________________________ Date: ___________
Witness: ___________________________ Date: ___________
A cost plus contract provides complete transparency in project costs by reimbursing the contractor for all actual project expenses plus a predetermined fee. This contract structure is ideal for complex projects where cost predictability is less important than transparency and quality control.
Cost plus contracts require rigorous documentation and administrative processes. Both parties must commit to transparent communication and detailed record keeping. Regular cost reviews and monitoring are essential to ensure the project stays within acceptable budget parameters while maintaining quality standards.