Cost Plus Construction Agreement Template for Ireland

A Cost Plus Construction Agreement is a flexible contracting arrangement where you reimburse the contractor for actual project costs plus an agreed fee or percentage markup. This contract type is essential when you cannot accurately estimate final costs upfront or need flexibility to modify the project scope during construction.

When do you need this document?

You should consider a cost plus agreement when undertaking complex renovation projects where hidden structural issues may emerge, custom-build projects requiring high-end finishes and materials, emergency repair works following damage, or phased construction projects where the final scope evolves based on initial findings. This arrangement is particularly valuable for heritage building restorations, luxury residential projects, or commercial fit-outs where specific requirements become clear only during construction. The agreement provides transparency in costs while allowing necessary adjustments without renegotiating the entire contract.

Key legal considerations

Your agreement must establish clear cost verification procedures, including requirements for receipts, invoices, and third-party confirmations of expenses. Define which costs are reimbursable versus excluded, such as contractor overhead, equipment depreciation, or subcontractor markups. Include provisions for cost auditing rights, maximum cost thresholds, and approval procedures for major expenditures. Address change order procedures, time extensions, and how additional costs are authorised. Establish quality standards, defect remediation procedures, and retention provisions to protect against poor workmanship. Include termination clauses that address payment for work completed and materials purchased but not yet incorporated into the project.

Legal requirements in Ireland

Your contract must comply with the Construction Contracts Act 2013, which mandates specific payment terms, dispute resolution procedures, and statutory rights for contractors and subcontractors. Include provisions addressing the Building Control Act 1990-2014 requirements for building control authority notifications, inspection schedules, and certificates of compliance. Ensure compliance with Safety, Health and Welfare at Work (Construction) Regulations 2013 by defining project supervisor responsibilities and site safety obligations. Address Planning and Development Acts requirements for planning permission compliance and any conditions attached to development consent. Include Building Regulations 2017 compliance provisions covering technical standards, accessibility requirements, and energy performance standards. Consider Consumer Rights Act provisions if the employer is a consumer, and ensure compliance with relevant insurance requirements and professional indemnity obligations for design team members.