COST-PLUS NEGOTIATED FEE

Under a cost-plus negotiated fee contract, we will bill you for our costs, including both direct and indirect costs, plus a fixed negotiated fee.

Terminology

Cost-Plus Negotiated Fee:
reimburses costs and pays the contractor a fee that is negotiated prior to signing the contract.

Fixed-Fee:
the contractor includes the costs of materials and labor plus his contractor’s fees in his bid. The contractor does not receive a separate cost reimbursement.

Cost-Plus Incentive Fee:
a cost-reimbursement contract that encourages the contractor to bring in the project under budget.