Cost Plus Construction Contract Template

Important Notice

The content provided serves as a general guideline for structured construction agreements involving cost reimbursement. It is intended to assist in understanding standard terms and conditions but does not substitute for legal advice. Variations in local laws and project specifics may require adjustments. Responsibility for ensuring compliance and appropriateness of this information rests solely with the user, and we disclaim any liability for errors or misapplication resulting from its use without professional consultation.

This sample document provides a general outline of a Cost Plus Construction Contract. Please adapt the details to your specific project and legal requirements. Variations in wording may occur.

Cost Plus Construction Contract Sample

Parties Involved:

Owner: ABC Developers LLC
Address: 789 Business Rd., Suite 200, Cityville, ST 12345

Contractor: XYZ Construction Inc.
Address: 456 Builder Lane, Cityville, ST 12345

Description of Project:

The project involves the construction of a commercial office building located at 101 Commercial Ave., Cityville, ST 12345, including all necessary site preparation, construction, and finishing works as specified in the project scope.

Contract Terms and Payment:

The contract shall commence on __________________ and shall continue until completion, estimated on or before __________________. The owner agrees to pay the contractor based on the actual cost of work plus a fixed fee or percentage as specified, payable monthly upon submission of invoices.

Cost Reconciliation and Reporting:

The contractor shall keep accurate records of all costs incurred, including labor, materials, equipment, and subcontractors. An itemized invoice shall be submitted monthly, with supporting documentation for review and approval by the owner.

Obligations of the Parties:

The owner shall provide necessary project access and approvals, and make timely payments. The contractor shall perform the work according to approved plans, specifications, and applicable laws, maintaining safety and quality standards.

Governing Law:

This agreement shall be governed by the laws of the State of __________________. Any disputes arising from this contract shall be resolved in the courts of that state.

Additional Provisions:

• All changes or modifications to the scope of work must be documented and approved in writing by both parties.
• The contractor shall obtain necessary permits and notify the owner of any legal or regulatory issues.
• Final payment shall be made upon satisfactory completion and acceptance of the work, including all documentation and closeout procedures.

Cityville, ______________________