COST-PLUS CONTRACT

Services

Cost Plus Fee






Delivering a reliable solution while effectively managing your budget.


We offer a reliable solution with meticulous budget management through our Cost-Plus model. This contract delivery option allows the Contractor to initiate work before the design is finalized and be compensated for all construction-related expenses, along with a predetermined, reduced fee.

In contrast to the General Contractor model, where a fixed contract amount is based on a completed design package (usually marked up by 15% or more), the Cost-Plus approach enables project Owners to kickstart their projects sooner, even while the design process is ongoing, similar to the Construction Management model. As the Owner assumes the cost liability, the Contractor's markup fee is significantly lower than that of a typical General Contractor model. The cost savings resulting from an earlier project commencement greatly benefits the Owner.

The Cost-Plus model is frequently chosen by project Owners seeking peace of mind when selecting a Contractor based on qualifications, rather than taking the risk of choosing a Contractor solely on the lowest bid.

When the Cost-Plus model proves invaluable:

  • When the Owner faces time constraints that prevent the completion of project designs and obtaining precise stipulated sum pricing before work commencement.
  • When project complexities hinder the acquisition of sufficiently accurate and specific project specifications, or for certain project components. In such cases, a cost-plus pricing arrangement is necessary for the successful administration of construction.

For further details or to request a quote for a Cost-Plus project, please do not hesitate to contact us today.

Contact Us for a free consultation.

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