Contractor Compensation

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January 1, 1 6 min read Definitions

Cost-Plus-Percentage Contract Construction Agreements Contractor Compensation Project Costs Percentage Profit Incentive Structure Construction Budget

A cost-plus-percentage contract is a construction agreement in which the contractor is compensated with a specified percentage profit over and above the actual construction costs. This type of contract can lead to increased project costs due to the lack of incentive for the contractor to minimize expenses.

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