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Construction Contract Cost Plus or Fixed Fee - Kansas 2026

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This document is a Construction Contract between a Contractor and an Owner, outlining the terms and conditions for the construction of a project. It details the scope of work, time of completion, payment structure, responsibilities regarding permits and soil conditions, insurance requirements, change orders, and procedures for handling destruction or damage to the project. The contract also includes clauses on assignment, interpretation, attorney fees, performance standards, and warranty limitations.

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Click ‘Get Form’ to open the Construction Contract Cost Plus or Fixed Fee - Kansas in the editor.
Begin by filling in the Contractor and Owner details, including names and addresses, in the designated fields at the top of the form.
In the 'SCOPE OF WORK' section, clearly describe the project specifics, referencing any attached drawings and specifications that outline materials and work required.
Specify the 'WORK SITE' address where construction will take place. Ensure this matches any legal descriptions provided.
Indicate the 'TIME OF COMPLETION' by entering start and completion dates. Be mindful of potential delays outlined in this section.
Choose between 'COST PLUS' or 'FIXED FEE' payment structures. Fill in the respective amounts as applicable to your agreement.
Review all sections for accuracy before signing. Utilize our platform’s features to save your progress and share with involved parties for review.

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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 is the difference between cost-plus and fixed cost?

A cost plus contract guarantees profit for the contractor. It is stated in the contract that the contractor will be reimbursed for all costs and still generate a profit. Conversely, a fixed price contract establishes a projects price beforehand.

What are the advantages of cost-plus fixed-fee contract?

Benefits of a cost-plus fixed-fee contract They allow you to explore and adjust the scope, unlike firm-fixed-price contracts. CPFF contracts foster better communication between clients and contractors, especially when both parties must work closely to guarantee contract performance.

When should you use a fixed-price contract?

A fixed-price contract with economic price adjustment may be used when (i) there is serious doubt concerning the stability of market or labor conditions that will exist during an extended period of contract performance, and (ii) contingencies that would otherwise be included in the contract price can be identified and

What is the percentage of cost-plus in construction contracts?

A CPPC contract is one that is structured to pay the contractor his actual costs incurred on the contract plus a fixed percent for profit or overhead (that is not audited/adjusted) and which is applied to actual costs incurred.

When to use cost-plus fixed fee?

This contract is often used when the scope of the work cannot be precisely defined at the time of the agreement, and there are doubts about potential changes and variations in the course of the project. In a CPFF contract, the buyer agrees to reimburse the supplier for the allowable costs of the project.

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What are the disadvantages of a cost-plus fee contract?

What are the advantages and disadvantages of a cost-plus contract? Cost plus construction contracts offer advantages like transparency, flexibility, and reduced contractor risk. They also come with drawbacks, including uncertain pricing, a higher administrative workload, and a greater risk of disputes.

When should firms use cost plus pricing?

Cost-plus pricing is most appropriate in industries with stable, identifiable costs or when businesses want to ensure predictable profit margins. It can also be useful in less competitive markets where demand is relatively inelastic.