cost-plus contract (Meaning)

Wordnet

cost-plus contract (n)

a contract in which the contractor is paid his total cost plus a stated percentage of profit

Synonyms & Antonyms of cost-plus contract

No Synonyms and anytonyms found

cost-plus contract Sentence Examples

  1. The construction project was executed under a cost-plus contract, ensuring that all expenses incurred were reimbursed along with an agreed-upon profit margin.
  2. The cost-plus contract allowed for flexibility in budgeting, as it accounted for fluctuating material and labor costs.
  3. Under the terms of the cost-plus contract, the client agreed to pay the contractor's expenses plus an additional percentage for profit.
  4. Cost-plus contracts are common in industries where project costs are difficult to estimate accurately upfront.
  5. The cost-plus contract provided transparency by detailing all costs incurred and the agreed-upon profit margin.
  6. Despite the flexibility of cost-plus contracts, they require careful monitoring to prevent overspending.
  7. The contractor opted for a cost-plus contract to ensure fair compensation for their services, especially in the face of uncertain project requirements.
  8. Government agencies often utilize cost-plus contracts for projects that involve significant uncertainty or complexity.
  9. Some critics argue that cost-plus contracts can incentivize inefficiency if contractors prioritize maximizing expenses to increase their profit margin.
  10. The client and contractor negotiated the terms of the cost-plus contract to balance risk and reward for both parties involved.

FAQs About the word cost-plus contract

a contract in which the contractor is paid his total cost plus a stated percentage of profit

No synonyms found.

No antonyms found.

The construction project was executed under a cost-plus contract, ensuring that all expenses incurred were reimbursed along with an agreed-upon profit margin.

The cost-plus contract allowed for flexibility in budgeting, as it accounted for fluctuating material and labor costs.

Under the terms of the cost-plus contract, the client agreed to pay the contractor's expenses plus an additional percentage for profit.

Cost-plus contracts are common in industries where project costs are difficult to estimate accurately upfront.