What is the difference between a cost-plus and a fixed-price contract?
A cost-plus contract is a construction agreement that requires reimbursement for project costs as well as a markup that covers the contractors overhead and profit. In other words, the name is a short-hand way of remembering what the contract covers: project costs plus contractor markup.
What is the difference between a cost-plus and a fixed price construction contract?
Most contracts have a cost-plus fee scale of 10-25%. A contractor would use takeoff software to calculate the materials costs, but they wouldnt need to be exact. Some companies use a cost-plus-fixed-fee (CPFF) instead of a percentage.
What percentage do contractors charge for cost-plus?
Cost-plus contracts reduce risk for contractors but can increase costs for clients if not managed properly.
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Or. Admin. Code 137-049-0610 - Definitions for Alternative
These methods also include other developing techniques, which include but are not limited to general performance contracting, cost plus time contracting (
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