Construction · Defined
Cost-plus contract
A pricing arrangement reimbursing defined costs of the work plus an agreed fee, with or without a maximum price.
Why it matters
Review allowable costs, fee calculations, supporting records, and audit rights. A contractor invoice is not automatically an eligible reimbursable cost under the agreement.
In practice
A project example
A fee calculated on specified direct costs should not also be applied to an excluded category.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.