Cost-plus Contract


  • An agreement or contract where a construction contractor receives a fee based on a percentage of all costs paid for labour and materials.

percentage, cut, contractor fee

Related Terms and Acronyms

  • Construction Loan Definition,
    • A short-term interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
  • Contractor Definition,
    • Someone that agrees to furnish materials or perform services at a specified price.
    • One who constructs or oversees construction of a house or a large renovation.
  • Custom Builder Definition,
    • A contractor that constructs or remodels houses based on plans submitted by the client.
  • General Contractor Definition,
    • The person or company that performs work on a construction project, hires subcontractors and suppliers, or both.
  • Self-Build Insurance Definition,
    • Insurance that covers a homeowner for problems involved in a construction project.
  • Subcontractor Definition,
    • A person or company that does specialty work for a general contractor.
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