A contract where the owner pays all actual costs plus an agreed fee to the contractor.
A cost plus contract is a contract type in which the owner agrees to reimburse the contractor for all allowable project costs plus a fee, which may be a fixed amount or a percentage of costs. This type shifts cost risk to the owner but provides flexibility for projects with uncertain scope. A guaranteed maximum price (GMP) provision is often added to limit the owner's exposure.
The hospital used a cost-plus contract with a GMP of $22M for the emergency department expansion to accommodate design changes during construction.
Get AI-powered bid alerts, automated form filling, and proposal drafting.
Start Free Trial