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How to use or fill out Construction Contract Cost Plus or Fixed Fee - Missouri
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Click ‘Get Form’ to open it in the editor.
Begin by filling in the Contractor and Owner details, including names and addresses. This establishes the parties involved in the contract.
In the 'SCOPE OF WORK' section, clearly describe the project specifications and materials required. Ensure that all drawings are attached as they form part of this contract.
Specify the 'WORK SITE' address where construction will take place. This is crucial for legal clarity.
Indicate the 'TIME OF COMPLETION' by entering start and completion dates. Be mindful of any potential delays outlined in this section.
Choose between 'COST PLUS' or 'FIXED FEE' payment structures and fill in the respective amounts. This defines how payments will be made throughout the project.
Review all sections for accuracy before signing. Utilize our platform’s features to add signatures digitally, ensuring a smooth completion process.
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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.
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 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.
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by SH Bartholomew 2022 Forward Pricing Under fixed-price contracts, the contractor assumes the full financial risk of performance in the same manner as for the original contract when
Revised Statutes of Missouri, RSMo Section 144.060 - MO.gov
(1973) Property consisting of tools, materials and construction supplies purchased by independent contractor to be used in fulfilling a cost-plus a fixed-fee
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