Cost-Plus Contract

Cost-Plus Contract,

How Do You Define Cost-Plus Contract?

  1. The definition of Cost-Plus Contract is: An indirect contract is a contract for the payment of a fixed amount of profits to the company in addition to expenses, usually expressed as a percentage of the total value of the contract. This type of contract is mainly used in the construction sector, where the buyer bears a portion of the risk, but it also allows the contractor some leeway. In this case, the contracting partner declares that the contractor will keep its delivery promise and promises to pay extra so that the contractor can earn extra profit upon completion.

    • In a surcharge agreement, one of the parties reimburses a certain profit in relation to the total cost of the order in addition to the contract partner's costs.
    • Utility contracts are often used in construction when budgets are tight or it is more likely that actual costs will be lower than expected.
    • The contractor must provide proof of all relevant costs, including direct and indirect costs.

Literal Meanings of Cost-Plus Contract

Cost:

Meanings of Cost:
  1. Payment (an amount of money) is required before receiving or performing (an item or action).

Sentences of Cost
  1. It is your job to discover what that is and to bring it about.

Synonyms of Cost

selling price, rental, evaluate, market price, price, sell for, put a figure on, levy, charge, fee, estimate the price of, toll, hire charge, estimate the cost of, put a price on, value, be priced at, fetch, be valued at, put a value on

Plus:

Meanings of Plus:
  1. With the addition of

  2. Operations other than math

  3. An advantage.

  4. (After number or amount) at least.

  5. (In front of the number) above positive zero

  6. It has a positive electric charge.

  7. and also.

Sentences of Plus
  1. Two plus four is six

  2. Language skills are an advantage.

  3. The company estimates a loss of $ 500,000 or more

  4. Plus 60 degrees Celsius

Synonyms of Plus

fringe benefit, besides, beauty, added extra, additional benefit, bonus, to boot, on top of that, attraction, in addition, advantage, attractive feature, yet, moreover, extra, good point, benefit, as well, increased by, added to, perk, additionally, added advantage, also, with the addition of, pro, and

Contract:

Meanings of Contract:
  1. Make formal and legally binding agreements.

  2. Catch or Prepare (Disease or Infectious Agent)

  3. Your debt

  4. Written or verbal agreements, including, but not limited to, employment, sale, or lease agreements, which are intended to be legal.

Sentences of Contract
  1. When it cools, the glass contracts

  2. Local authorities will employ various agencies to provide services

  3. Three people infected with the deadly virus

  4. Loan ، 3,300

Synonyms of Contract

bond, promise, undertaking, agreement, pick up, get smaller, fall ill with, succumb to, covenant, be taken ill with, catch, fall into, arrangement, understanding, incur, compact, be stricken with, become infected with, acquire, pledge