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Fixed price construction contract example

Construction Contract Cost Plus or Fixed Fee - Nebraska 2026

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This document is a Construction Contract between a Contractor and an Owner, outlining the terms 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, 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, governing law, attorney fees, performance standards, and warranty provisions.

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Click ‘Get Form’ to open it in the editor.
Begin by entering the Contractor's name and address in the designated fields. This identifies who will be performing the work.
Next, fill in the Owner's name and address. This ensures that both parties are clearly defined in the contract.
In the 'SCOPE OF WORK' section, describe the project details, including labor and materials required for completion. Be specific about drawings and specifications.
Specify the 'WORK SITE' location where construction will take place. Include any necessary authorizations for excavation or grading.
Indicate the 'TIME OF COMPLETION' by filling in start and completion dates, noting any potential delays due to unforeseen circumstances.
Choose between 'COST PLUS' or 'FIXED FEE' payment structures and enter relevant amounts in the 'CONTRACT PRICE' section.
Review all sections for accuracy before signing. Ensure both parties sign and date at the end of the document to finalize the contract.

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Which is an advantage of the 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.

What is a disadvantage of a cost-plus fixed-fee 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.

What is a cost-plus fixed-fee 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.

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 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.

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What does cost-plus 6% mean?

Cost-plus pricing is calculated by multiplying a markup percentage by the total costs of a product or service. The selling price then equals the total cost, plus the calculated markup.

Construction Contract Cost Plus or Fixed Fee - Nebraska 2026

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Which is an advantage of the cost-plus fixed-fee contract?

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What is a cost-plus fixed-fee contract?

What percentage do contractors charge for cost-plus?

What is a cost-plus fixed-fee construction contract?

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What does cost-plus 6% mean?

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