When a job is put out for bids from contractors, the employer has options on the type of contract. In a fixed-fee contract, the contractor includes the costs of materials and labor plus his ...

Owners and contractors have two choices for the type of contract and agreement to use: fixed price or cost-plus. Both types of contracts have their advantages and disadvantages, but let's look ...

Cost Plus contracts have been criticized as they transfer the risk from the contractor to the Government. One of the Obama contracting reform planks has been the reduction in use of these types of ...

Our last 200 flips have been with the same contractor, and we’ve found a cost-plus relationship provides the best path to success. With a cost-plus contract, the contractor is reimbursed all ...

Cost Accounting and Construction Contracts—More Complex Than It Appears Paying a contractor for its work might appear straightforward, but actually can be complex. While this issue is sometimes ...

The principle behind a cost-plus contract is simple. Occasionally, the US government needs something exceptionally difficult, complex, and unprecedented to be built. In those cases, with technical ...

Also, if the project comes in under budget, the contractor pockets the profit, which again could encourage subpar work. A cost-plus contract covers labor, materials, and profit but does not ...

The Bush administration significantly increased the use of a contract structure that is risky to the government, according a new report by the Office of Management and Budget. Cost-reimbursement ...