Cost plus contract - Revision history

Editor at 09:00, 11 January 2024

2024-01-11T09:00:52Z

← Older revision		Revision as of 09:00, 11 January 2024
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	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit.		JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit.

−	= ~~Setting prices~~ and provisional sums =	+	= Prices and provisional sums =

	The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.		The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.

Editor at 09:00, 11 January 2024

2024-01-11T09:00:25Z

← Older revision		Revision as of 09:00, 11 January 2024
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		+	= What are cost plus contracts =
		+
	Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.		Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.

−	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.	+	= Cost plus, cost reimbursable and prime cost contracts =
		+
		+	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit.
		+
		+	= Setting prices and provisional sums =
		+
		+	The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.

	= Types and terms describing cost plus contracts =		= Types and terms describing cost plus contracts =

Editor at 08:46, 11 January 2024

2024-01-11T08:46:56Z

← Older revision		Revision as of 08:46, 11 January 2024
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	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.		JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.
		+
		+	= Types and terms describing cost plus contracts =

	There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.		There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.

−	= Cost + fixed percentage contract =	+	== Cost plus (Cost +) fixed percentage contract ==

	Cost + Fixed Percentage Contract – Contractor will be entitled to Cost and profit percentage as agreed before.		Cost + Fixed Percentage Contract – Contractor will be entitled to Cost and profit percentage as agreed before.

−	= Cost + fixed fee contract =	+	== Cost plus (Cost +) fixed fee contract ==

	Cost + Fixed Fee Contract – Contractor will be entitled to Cost and Fixed fee as a profit		Cost + Fixed Fee Contract – Contractor will be entitled to Cost and Fixed fee as a profit

−	= Cost + fixed fee with Guaranteed Maximum Price Contract =	+	== Cost plus (Cost +) fixed fee with Guaranteed Maximum Price Contract ==

	Cost + Fixed Fee with Guaranteed Maximum Price Contract – Contractor will be entitled to Cost and Fixed fee as a profit, But the cost of the project should not exceed the agreed amount		Cost + Fixed Fee with Guaranteed Maximum Price Contract – Contractor will be entitled to Cost and Fixed fee as a profit, But the cost of the project should not exceed the agreed amount

−	= Cost + award fee contract =	+	== Cost plus (Cost +) award fee contract ==

	Cost + Award Fee contract is essentially the same as Cost + Fixed Fee Contract, allow the contractor to be awarded a fee usually for good performance.		Cost + Award Fee contract is essentially the same as Cost + Fixed Fee Contract, allow the contractor to be awarded a fee usually for good performance.

−	= Cost + incentive fee contract =	+	== Cost plus (Cost +) incentive fee contract ==

	Cost + incentive fee contract is essentially a different description of the same as above, it may describe when the contractor is given a fee if their performance meets or exceeds expectations.		Cost + incentive fee contract is essentially a different description of the same as above, it may describe when the contractor is given a fee if their performance meets or exceeds expectations.

−	= Multiple Incentive Contracts =	+	== Multiple Incentive Contracts ==

	Multiple Incentive Contracts are another term for incentive contracts that relate normally to the standard three areas of cost, quality and time, but could be expanded or defined in more detail.		Multiple Incentive Contracts are another term for incentive contracts that relate normally to the standard three areas of cost, quality and time, but could be expanded or defined in more detail.

Editor at 08:44, 11 January 2024

2024-01-11T08:44:48Z

← Older revision		Revision as of 08:44, 11 January 2024
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	Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.		Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.

−	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.	+	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums, contingencies or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.

	There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.		There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.
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	Multiple Incentive Contracts are another term for incentive contracts that relate normally to the standard three areas of cost, quality and time, but could be expanded or defined in more detail.		Multiple Incentive Contracts are another term for incentive contracts that relate normally to the standard three areas of cost, quality and time, but could be expanded or defined in more detail.

−	[[Category:~~Articles_needing_more_work~~]]	+	= Related articles on Designing Buildings =
		+
		+	* Benchmarking.
		+	* Building performance.
		+	* Business plan.
		+	* Contracts for Difference.
		+	* Contingent liabilities.
		+	* Cost plan.
		+	* Cash flow.
		+	* Cost reimbursable contract.
		+	* Contingencies in construction.
		+	* Contingency plan.
		+	* Defined provisional sum.
		+	* Energy performance contracts.
		+	* Estimate.
		+	* Fixed price construction contract.
		+	* Guaranteed maximum price for construction contracts.
		+	* Low Carbon Contracts Company‎.
		+	* Lump sum contract.
		+	* Milestones.
		+	* Performance.
		+	* Performance contracting.
		+	* Performance incentives in contracts.
		+	* Performance requirements.
		+	* Preliminaries in construction.
		+	* Prime cost contract.
		+	* Project risk.
		+	* Provisional sum.
		+	* Retention.
		+	* Undefined provisional sum.
		+	* Value management.
		+	* Whole life costs.
		+
		+	[[Category:DCN_Commentary]] [[Category:DCN_Definition]] [[Category:DCN_Project_Knowledge]] [[Category:DCN_Specification]] [[Category:Definitions]] [[Category:Case_law]] [[Category:Property_law]] [[Category:Appointments]] [[Category:Client_procedures]] [[Category:Construction_management]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]]

Editor at 08:21, 11 January 2024

2024-01-11T08:21:45Z

← Older revision		Revision as of 08:21, 11 January 2024
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	Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.		Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.

−	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of provisional sums or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.	+	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of defined provisional sums, undefined provisional sums or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.

	There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.		There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.

Editor at 08:19, 11 January 2024

2024-01-11T08:19:07Z

← Older revision		Revision as of 08:19, 11 January 2024
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−	Cost plus contracts are a form of ~~cost reimbursable~~ contract ~~but there is some disagreement in terms of~~ the ~~relationship~~ with ~~prime cost contracts. Whilst JCT suggests prime cost contracts~~, ~~cost plus contracts and cost reimbursable contracts are~~ the ~~same thing, others consider they differ as cost~~ of ~~works packages (~~the ~~prime~~ cost~~) are reimbursed~~, ~~but the main contractor takes a risk on staffing, overhead costs and profit~~ which might be ~~tendered~~ on a ~~fixed~~ price.	+	Cost plus contracts are a form of contract whereby the contractor's costs are reimbursed along with a further payment, the nature of which depends on the form taken. As such these types of contract fall under the general category of cost reimbursable contracts, which might be considered higher risk from the client side because the final cost might not be specifically known or defined, although opinions differ on this point. The use of a guaranteed maximum price (GMP) along side cost plus has been one solution to this.

−	There are a number of variations ~~aswell~~ as terms that describe cost plus contracts, which also vary depending on ~~coutry but essentially three types of cost reimbursable methods used in~~ the ~~construction industry~~.	+	JCT has suggested that cost plus contracts, cost reimbursable contracts and prime cost contracts, are in fact the same, whilst others consider they differ as cost of work packages (the prime cost) are reimbursed, but the main contractor takes on risks of staffing, overhead costs and profit. The disagreement or confusion may lay in the differences between the terminologies of fixed price, firm price, lump sum, stipulated sum, prime cost, guaranteed maximum price (GMP) and so on. The differences essentially being in the considered accuracy of the said amount, and which aspects are covered. For example the inclusion of provisional sums or allowances within the total might be for items of work that cannot be specifically priced by the contractor and as such may detract from accuracy leading to the use of GMP.
		+
		+	There are a number of variations, as well as terms, that describe cost plus contracts, which also vary depending on the country of their use, some examples of these are described below.

	= Cost + fixed percentage contract =		= Cost + fixed percentage contract =

Editor at 17:08, 10 January 2024

2024-01-10T17:08:25Z

← Older revision		Revision as of 17:08, 10 January 2024
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	Cost + incentive fee contract is essentially a different description of the same as above, it may describe when the contractor is given a fee if their performance meets or exceeds expectations.		Cost + incentive fee contract is essentially a different description of the same as above, it may describe when the contractor is given a fee if their performance meets or exceeds expectations.
		+
		+	= Multiple Incentive Contracts =
		+
		+	Multiple Incentive Contracts are another term for incentive contracts that relate normally to the standard three areas of cost, quality and time, but could be expanded or defined in more detail.
		+
		+	[[Category:Articles_needing_more_work]]

Editor at 17:04, 10 January 2024

2024-01-10T17:04:04Z

← Older revision		Revision as of 17:04, 10 January 2024
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	There are a number of variations aswell as terms that describe cost plus contracts, which also vary depending on coutry but essentially three types of cost reimbursable methods used in the construction industry.		There are a number of variations aswell as terms that describe cost plus contracts, which also vary depending on coutry but essentially three types of cost reimbursable methods used in the construction industry.

−	= Cost + ~~Fixed Percentage Contract~~ =	+	= Cost + fixed percentage contract =

	Cost + Fixed Percentage Contract – Contractor will be entitled to Cost and profit percentage as agreed before.		Cost + Fixed Percentage Contract – Contractor will be entitled to Cost and profit percentage as agreed before.

−	= Cost + ~~Fixed Fee Contract~~ =	+	= Cost + fixed fee contract =

	Cost + Fixed Fee Contract – Contractor will be entitled to Cost and Fixed fee as a profit		Cost + Fixed Fee Contract – Contractor will be entitled to Cost and Fixed fee as a profit

−	= Cost + ~~Fixed Fee~~ with Guaranteed Maximum Price Contract =	+	= Cost + fixed fee with Guaranteed Maximum Price Contract =

	Cost + Fixed Fee with Guaranteed Maximum Price Contract – Contractor will be entitled to Cost and Fixed fee as a profit, But the cost of the project should not exceed the agreed amount		Cost + Fixed Fee with Guaranteed Maximum Price Contract – Contractor will be entitled to Cost and Fixed fee as a profit, But the cost of the project should not exceed the agreed amount

−	= Cost + ~~Award Fee~~ contract =	+	= Cost + award fee contract =

−	= Cost + ~~Incentive~~ fee =	+	Cost + Award Fee contract is essentially the same as Cost + Fixed Fee Contract, allow the contractor to be awarded a fee usually for good performance.
		+
		+	= Cost + incentive fee contract =
		+
		+	Cost + incentive fee contract is essentially a different description of the same as above, it may describe when the contractor is given a fee if their performance meets or exceeds expectations.

Editor at 16:29, 10 January 2024

2024-01-10T16:29:08Z

← Older revision		Revision as of 16:29, 10 January 2024
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		+	Cost plus contracts are a form of cost reimbursable contract but there is some disagreement in terms of the relationship with prime cost contracts. Whilst JCT suggests prime cost contracts, cost plus contracts and cost reimbursable contracts are the same thing, others consider they differ as cost of works packages (the prime cost) are reimbursed, but the main contractor takes a risk on staffing, overhead costs and profit which might be tendered on a fixed price.

−	~~#redirect:[[Cost_reimbursable_contract\|Cost_reimbursable_contract]]~~	+	There are a number of variations aswell as terms that describe cost plus contracts, which also vary depending on coutry but essentially three types of cost reimbursable methods used in the construction industry.
		+
		+	= Cost + Fixed Percentage Contract =
		+
		+	Cost + Fixed Percentage Contract – Contractor will be entitled to Cost and profit percentage as agreed before.
		+
		+	= Cost + Fixed Fee Contract =
		+
		+	Cost + Fixed Fee Contract – Contractor will be entitled to Cost and Fixed fee as a profit
		+
		+	= Cost + Fixed Fee with Guaranteed Maximum Price Contract =
		+
		+	Cost + Fixed Fee with Guaranteed Maximum Price Contract – Contractor will be entitled to Cost and Fixed fee as a profit, But the cost of the project should not exceed the agreed amount
		+
		+	= Cost + Award Fee contract =
		+
		+	= Cost + Incentive fee =

Designing Buildings: Redirected page to Cost reimbursable contract

2012-11-21T16:51:55Z

Redirected page to Cost reimbursable contract

← Older revision		Revision as of 16:51, 21 November 2012
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−	#redirect:[[~~Prime_cost_contract~~\|~~Prime_cost_contract~~]]	+
		+	#redirect:[[Cost_reimbursable_contract\|Cost_reimbursable_contract]]