The Cost Plus Contractor Agreement is designed for projects where exact costs are difficult to predict or when flexibility is needed in project scope. This contract type, commonly used in the United States, provides transparency in cost allocation while ensuring fair compensation for contractors. It includes specific provisions for cost documentation, approval processes, and fee calculations. The agreement is particularly suitable for complex projects, research and development work, or situations where scope may evolve. Key components include detailed cost breakdowns, markup structures, reporting requirements, and compliance with relevant federal and state regulations.
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1. Parties: Identifies and defines the contracting parties (owner/client and contractor)
2. Background: Establishes context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Work: Detailed description of services and work to be performed
5. Cost Structure and Payment Terms: Defines allowable costs, contractor's fee, and payment procedures
6. Duration and Timeline: Project schedule, milestones, and completion dates
7. Contractor Obligations: Key responsibilities and commitments of the contractor
8. Client Obligations: Key responsibilities and commitments of the client
9. Insurance Requirements: Mandatory insurance coverage and limits
10. Termination: Conditions and procedures for contract termination
1. Performance Bonds: Requirements for performance bonds when required by law or for large projects
2. Liquidated Damages: Predetermined damages for specific breaches when monetary losses can be anticipated
3. Change Order Procedures: Process for modifying scope or costs for complex projects likely to require changes
4. Dispute Resolution: Specific procedures for resolving disputes when parties want to specify alternative dispute resolution
1. Schedule A - Scope of Work: Detailed technical specifications and requirements
2. Schedule B - Cost Breakdown: Detailed breakdown of costs, fees, and markup percentages
3. Schedule C - Project Timeline: Detailed project schedule and milestones
4. Schedule D - Key Personnel: List of key project team members and their roles
5. Schedule E - Insurance Certificates: Copies of required insurance certificates
6. Schedule F - Rate Card: Agreed rates for labor, equipment, and materials
7. Schedule G - Forms and Procedures: Standard forms for change orders, progress reports, etc.
Relevant legal definitions
Agreement
Allowable Costs
Applicable Laws
Approved Budget
Base Cost
Change Order
Client Representative
Completion Date
Contract Documents
Contractor's Fee
Contractor's Representative
Cost Plus Fee
Direct Costs
Effective Date
Equipment
Final Completion
Force Majeure Event
Indirect Costs
Invoice
Key Personnel
Labor Costs
Material Costs
Markup
Milestone
Non-Allowable Costs
Notice
Overhead Costs
Payment Certificate
Project
Project Schedule
Project Site
Quality Standards
Scope of Work
Services
Subcontractor
Substantial Completion
Time and Materials
Variations
Work
Work Product
Allowable Costs
Applicable Laws
Approved Budget
Base Cost
Change Order
Client Representative
Completion Date
Contract Documents
Contractor's Fee
Contractor's Representative
Cost Plus Fee
Direct Costs
Effective Date
Equipment
Final Completion
Force Majeure Event
Indirect Costs
Invoice
Key Personnel
Labor Costs
Material Costs
Markup
Milestone
Non-Allowable Costs
Notice
Overhead Costs
Payment Certificate
Project
Project Schedule
Project Site
Quality Standards
Scope of Work
Services
Subcontractor
Substantial Completion
Time and Materials
Variations
Work
Work Product
Clauses
Scope of Work
Cost Reimbursement
Fee Structure
Payment Terms
Change Orders
Time and Schedule
Performance Standards
Quality Control
Reports and Records
Audit Rights
Insurance
Indemnification
Warranties
Health and Safety
Environmental Compliance
Confidentiality
Intellectual Property
Force Majeure
Suspension
Termination
Dispute Resolution
Assignment and Subcontracting
Compliance with Laws
Notice Requirements
Bonds and Security
Site Access
Materials and Equipment
Labor Relations
Risk Allocation
Limitation of Liability
Representations and Warranties
Default and Remedies
Progress Monitoring
Cost Control
Documentation Requirements
Cost Reimbursement
Fee Structure
Payment Terms
Change Orders
Time and Schedule
Performance Standards
Quality Control
Reports and Records
Audit Rights
Insurance
Indemnification
Warranties
Health and Safety
Environmental Compliance
Confidentiality
Intellectual Property
Force Majeure
Suspension
Termination
Dispute Resolution
Assignment and Subcontracting
Compliance with Laws
Notice Requirements
Bonds and Security
Site Access
Materials and Equipment
Labor Relations
Risk Allocation
Limitation of Liability
Representations and Warranties
Default and Remedies
Progress Monitoring
Cost Control
Documentation Requirements
Relevant Industries
Relevant Teams
Relevant Roles
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