Cost Plus Contractor Agreement for Ireland

Cost Plus Contractor Agreement Template for Ireland

A Cost Plus Contractor Agreement governed by Irish law is a specialized contract where the client agrees to reimburse the contractor for all allowed costs incurred in executing the work, plus an additional agreed-upon percentage or fixed fee as profit. This agreement type is particularly suitable for projects where the exact scope or costs cannot be determined upfront, providing flexibility while maintaining transparency in cost tracking. The document includes detailed provisions for cost verification, audit rights, and payment procedures, all aligned with Irish contract law and relevant industry regulations.

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What is a Cost Plus Contractor Agreement?

The Cost Plus Contractor Agreement is essential for businesses operating in Ireland who need to engage contractors for projects where exact costs are difficult to predetermine. This contract type is commonly used in complex projects, particularly in construction, consulting, and specialized technical services, where scope flexibility is required. The agreement outlines the methodology for calculating contractor compensation (direct costs plus agreed markup), defines allowable costs, establishes audit rights, and includes necessary protections under Irish law. It's particularly valuable when project specifications may evolve, when rapid project initiation is required, or when cost transparency is prioritized over fixed pricing. The document ensures compliance with Irish contract law, construction regulations, and relevant industry standards while providing a framework for fair risk allocation between parties.

What sections should be included in a Cost Plus Contractor Agreement?

1. Parties: Identification of the client and contractor, including full legal names and registered addresses

2. Background: Context of the agreement, brief description of the project and parties' objectives

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Scope of Services: Detailed description of the services to be provided by the contractor

5. Cost Plus Mechanism: Definition of base costs, markup percentage, and what constitutes allowable costs

6. Payment Terms: Payment schedule, invoicing requirements, payment approval process, and timing

7. Contractor's Obligations: Key responsibilities, performance standards, and deliverables

8. Client's Obligations: Client's responsibilities including access, information provision, and approvals

9. Records and Audit Rights: Requirements for maintaining cost records and client's audit rights

10. Insurance and Indemnity: Insurance requirements and indemnification provisions

11. Intellectual Property: Ownership and usage rights of any IP created during the services

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement and circumstances for termination

14. Force Majeure: Provisions for unforeseen circumstances preventing performance

15. Governing Law and Jurisdiction: Confirmation of Irish law governance and jurisdiction

16. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

What sections are optional to include in a Cost Plus Contractor Agreement?

1. Health and Safety: Detailed health and safety requirements, mandatory for construction or high-risk services

2. Environmental Compliance: Environmental obligations and standards, important for projects with environmental impact

3. Quality Assurance: Specific quality standards and testing requirements, relevant for technical projects

4. Personnel Requirements: Specific qualifications or certifications required, relevant when specialized skills are needed

5. Security Requirements: Security protocols and clearances, important for sensitive projects

6. Change Control: Process for managing changes to scope or specifications, important for complex projects

7. Dispute Resolution: Alternative dispute resolution procedures, recommended for high-value contracts

8. Data Protection: GDPR compliance provisions, required when personal data is processed

What schedules should be included in a Cost Plus Contractor Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and specifications

2. Schedule 2 - Fee Schedule: Detailed breakdown of base costs, markup, and payment calculations

3. Schedule 3 - Key Personnel: List of key contractor personnel and their roles

4. Schedule 4 - Time Schedule: Project timeline, milestones, and completion dates

5. Schedule 5 - Required Insurance: Specific insurance types and coverage amounts

6. Schedule 6 - Cost Breakdown Structure: Detailed categorization of allowable and non-allowable costs

7. Schedule 7 - Forms and Procedures: Standard forms for progress reports, change orders, and invoicing

8. Appendix A - Client Policies: Relevant client policies and procedures to be followed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Engineering

Information Technology

Management Consulting

Research and Development

Manufacturing

Infrastructure

Energy

Mining

Defense

Professional Services

Relevant Teams

Legal

Procurement

Finance

Operations

Commercial

Project Management

Risk and Compliance

Construction

Technical Services

Contract Administration

Relevant Roles

Commercial Director

Procurement Manager

Project Manager

Contract Administrator

Legal Counsel

Finance Director

Operations Manager

Construction Manager

Technical Director

Cost Controller

Risk Manager

Quantity Surveyor

Compliance Officer

Chief Financial Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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