What are Cost-Plus Contracts?
We are often asked the difference between a Cost-Plus contract and a Lump-Sum contract. This short article will define these two contractual delivery methods and offer some advantages of each. Cost-plus as a contractual delivery method defines the work of the agreement and defines the overhead and profit required to put this work in place. The overhead or General Conditions are often tied to the duration of the work. The profit or fee is often defined as a percentage of the t