Cost-Plus
Understanding cost-plus contracts in construction. Learn the pros and cons of billing based on actual costs plus a percentage fee.
Calculation Formula
Invoiced Amount = Total Project Costs + (Total Project Costs × Fee %) Real Contractor Example
A contractor manages a complex renovation where the scope is undefined. They bill for all materials/labor ($80,000) and add a 15% management fee.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.