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Topic: Business
Number of pages / Number of words: 5 / 1122
Essay's paper body

The contractor and the owner need simply agree on the validity of the various cost reimbursements that are requested. It is imperative that the contracts clarify which costs will be reimbursed.

These contracts are used when the actual cost of a project or portions of a project are difficult to estimate with accuracy...

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This may occur when the plans are not complete or when the project cannot be accurately portrayed. It also may occur when a project is to be completed with a fairly short time period and the plans and specifications cannot be completed before construction starts.

A cost plus contract, unlike the other forms of contract, does not place the owner and the contractor in an adversarial relationship...

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