What cost-plus contract means
A cost-plus contract pays the contractor's actual costs plus an agreed fee or percentage for overhead and profit.
Also called cost plus fee.
Where it shows up in your business
It is common for custom work where scope is unclear. Open books are part of the deal, so keep receipts and timesheets organized from the first day.
Work it out
- Free template: Time and materials contract template
- Money guide: Flat rate vs time and materials
- Money: Money guides for contractors