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Cost Plus Contract – Fixed Fee – Homeowner

Cost Plus Contract – Fixed Fee – Homeowner

Code: FORM-267

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Cost Plus Contract – Fixed Fee – Homeowner

A cost-plus contract is one in which the purchaser agrees to pay the cost of all labor and materials plus an amount for contractor overhead and profit (usually as a percentage of the labor and material cost). This type of contract is often used when the scope of the work is undtermined or highly uncertain and the kinds of labor, material and equipment needed are also uncertain. It is important that the contractor maintain complete records of all time and materials spent by the contractor on the work.