cost-plus contract (Meaning)
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
- 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.
- The cost-plus contract provided transparency by detailing all costs incurred and the agreed-upon profit margin.
- Despite the flexibility of cost-plus contracts, they require careful monitoring to prevent overspending.
- The contractor opted for a cost-plus contract to ensure fair compensation for their services, especially in the face of uncertain project requirements.
- Government agencies often utilize cost-plus contracts for projects that involve significant uncertainty or complexity.
- Some critics argue that cost-plus contracts can incentivize inefficiency if contractors prioritize maximizing expenses to increase their profit margin.
- 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.
