{"id":85658,"date":"2021-10-29T08:44:19","date_gmt":"2021-10-29T15:44:19","guid":{"rendered":"https:\/\/essential.construction\/files\/?post_type=product&#038;p=85658"},"modified":"2021-10-29T08:44:19","modified_gmt":"2021-10-29T15:44:19","slug":"cost-plus-fixed-fee-contracts","status":"publish","type":"product","link":"https:\/\/essential.construction\/files\/business-operations\/legal\/cost-plus-fixed-fee-contracts\/","title":{"rendered":"Cost Plus Fixed Fee Contracts"},"content":{"rendered":"<p><strong>Understanding Cost-Plus Fixed Fee Contracts<\/strong><br \/>\nCost-plus contracts are generally used if the party drawing up the contract has budgetary restrictions or if the overall scope of the work can\u2019t be appropriately estimated in advance.<\/p>\n<p>In construction, cost-plus contracts are brought up so contractors can be reimbursed for almost every expense incurred on a project.<\/p>\n<p>The cost-plus contract pays the builder for direct costs and indirect or overhead costs. All payments must be supported by documentation of the contractor\u2019s spending in the form of invoices or receipts. Moreover, the contract allows the contractor to collect a certain amount above the reimbursed amount, so they may be able to make a profit\u2014hence, the \u201cplus\u201d in cost-plus contracts.<\/p>\n<p>One type of cost-plus contract is<strong> Cost Plus Fixed Fee Contract.<\/strong><\/p>\n<p>In this type, the contract pays a pre-determined fee agreed upon at the time of award of the contract. This fee will be fixed even if there is any extra. Both contractor and client will share the risk.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding Cost-Plus Fixed Fee Contracts Cost-plus contracts are generally used if the party drawing up the contract has budgetary restrictions &#8230; <a title=\"Cost Plus Fixed Fee Contracts\" class=\"read-more\" href=\"https:\/\/essential.construction\/files\/business-operations\/legal\/cost-plus-fixed-fee-contracts\/\" aria-label=\"Read more about Cost Plus Fixed Fee Contracts\">Read more<\/a><\/p>\n","protected":false},"featured_media":85379,"comment_status":"open","ping_status":"closed","template":"","meta":[],"product_brand":[],"product_cat":[1903,40,1396],"product_tag":[185,1968,1969],"class_list":{"0":"post-85658","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-legal","7":"product_cat-administration","8":"product_cat-proposals","9":"product_tag-contract","10":"product_tag-cost-plus","11":"product_tag-fee","12":"","13":"woocommerce-text-align-left","14":"woocommerce-image-align-center","15":"member-discount","16":"discount-restricted","18":"first","19":"instock","20":"downloadable","21":"virtual","22":"sold-individually","23":"purchasable","24":"product-type-simple"},"_links":{"self":[{"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/product\/85658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/product"}],"about":[{"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/types\/product"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/comments?post=85658"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/media\/85379"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/media?parent=85658"}],"wp:term":[{"taxonomy":"product_brand","embeddable":true,"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/product_brand?post=85658"},{"taxonomy":"product_cat","embeddable":true,"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/product_cat?post=85658"},{"taxonomy":"product_tag","embeddable":true,"href":"https:\/\/essential.construction\/files\/wp-json\/wp\/v2\/product_tag?post=85658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}