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Cost plus construction contract template 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, procedures for changes to the scope of work, and provisions for late payments and damages. The contract emphasizes that any modifications must be documented in writing and establishes legal governance under North Carolina law.

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Click ‘Get Form’ to open the cost plus construction contract template in the editor.
Begin by filling in the Contractor and Owner details, including names and addresses, at the top of the form.
In the 'SCOPE OF WORK' section, clearly describe the project specifications and any drawings that are part of this contract.
Specify the 'WORK SITE' address where the project will take place, ensuring accuracy for legal purposes.
Set a timeline for completion in the 'TIME OF COMPLETION' section, noting any potential delays that may arise.
Fill out the 'CONTRACT PRICE' section by selecting either cost plus or fixed fee payment structure and entering relevant amounts.
Review all sections for completeness and accuracy before saving your changes or sharing it with involved parties for signatures.

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What should be in a cost-plus contract?

With a cost-plus contract, the contractor and client first agree on what counts as costs and how profit will be calculated. Costs: Costs might include only direct costs, such as labor and materials, or they might include additional indirect costs, such as overhead expenses.

What is a cost-plus contract in construction?

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.

How to structure a cost-plus 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.

Why would you use a cost-plus contract?

A cost-plus contract reimburses contractors for project costs plus either a percentage or fixed fee, which they take as profit. This type of contract is favored by contractors because of the flexibility they offer. This makes them ideal for projects where the scope is unclear and subject to change.

What percentage do contractors charge for cost-plus?

Example of a cost-plus clause The Buyer agrees to pay the Seller for the cost of materials and labor used in the project, plus an additional 15% markup to cover overhead and profit. The total amount shall be invoiced monthly, and payment will be due within 30 days of receipt of the invoice.

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What are the 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.

Cost plus construction contract template 2026

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What should be in a cost-plus contract?

What is a cost-plus contract in construction?

How to structure a cost-plus contract?

Why would you use a cost-plus contract?

What percentage do contractors charge for cost-plus?

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What are the disadvantages of a cost-plus contract?

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