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Construction Contract Cost Plus or Fixed Fee - Louisiana 2026

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This document is a construction contract between a Contractor and an Owner, outlining the terms for the completion of a construction project. It details the scope of work, time of completion, payment structure, responsibilities regarding permits and soil conditions, insurance requirements, and procedures for changes to the project. The contract also addresses issues related to late payments, destruction or damage to the project, assignment of the contract, and legal interpretations. Additionally, it includes warranty provisions and stipulations regarding subcontractors.

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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, in the designated fields.
In the 'SCOPE OF WORK' section, clearly describe the project specifications and attach any relevant drawings or documents.
Specify the 'WORK SITE' address where the construction will take place, ensuring accuracy for legal purposes.
Set the 'TIME OF COMPLETION' by entering start and completion dates, keeping in mind potential delays.
Indicate whether you are using a 'COST PLUS' or 'FIXED FEE' payment structure and fill in the corresponding amounts.
Review all sections for completeness and accuracy before finalizing your contract.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What percentage do contractors charge for cost-plus?

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 margin on a cost plus contract?

For cost-plus contracts (where the client agrees to pay all costs, plus a specific percentage margin to the builder), a common practice is costs plus 15 to 20 per cent margin, although there are some contracts which include a margin as small as 5 per cent. The builders margin may also be a fixed amount.

What does cost-plus 25% mean?

In A-level economics, cost-plus pricing refers to a method where firms calculate the total cost of production and then add a percentage markup to set the final price.

What is the cost plus pricing rule?

Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a markup) to the products unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return.

What is a disadvantage of a cost-plus fixed fee contract?

Cost-plus contracts reduce risk for contractors but can increase costs for clients if not managed properly.

cost plus construction contract

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What is a cost-plus fixed fee construction contract?

A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract.