How Do You Define Cost-Plus Contract?
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
Meanings of Cost:
Payment (an amount of money) is required before receiving or performing (an item or action).
Sentences of Cost
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
Meanings of Plus:
With the addition of
Operations other than math
(After number or amount) at least.
(In front of the number) above positive zero
It has a positive electric charge.
Sentences of Plus
Two plus four is six
Language skills are an advantage.
The company estimates a loss of $ 500,000 or more
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
Meanings of Contract:
Make formal and legally binding agreements.
Catch or Prepare (Disease or Infectious Agent)
Written or verbal agreements, including, but not limited to, employment, sale, or lease agreements, which are intended to be legal.
Sentences of Contract
When it cools, the glass contracts
Local authorities will employ various agencies to provide services
Three people infected with the deadly virus
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