What Is a Cost-Plus Contract?
Sometimes called a cost reimbursement contract, the cost-plus contract is a legal agreement that allows a contractor to be paid in full for all expenses allowed by the terms of the contract, up to a set limit that is defined in the terms and conditions. In addition, the contractor may also receive additional compensation that will ensure that a profit is made on the job. There are several variations on this type of contract in common use today.
