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1. Parties: Identification of the contractor and principal, including full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and general purpose of the cost-plus arrangement
3. Definitions and Interpretation: Detailed definitions including 'Actual Cost', 'Fee', 'Reimbursable Costs', 'Supporting Documentation', and other key terms
4. Scope of Works: Detailed description of the works or services to be provided under the cost-plus arrangement
5. Cost Structure and Fee: Definition of allowable costs, calculation method for the contractor's fee (percentage or fixed), and markup provisions
6. Payment Terms: Payment process, timing, supporting documentation requirements, and invoice procedures
7. Cost Verification and Reporting: Requirements for cost documentation, reporting frequency, and verification procedures
8. Contractor's Obligations: Key responsibilities including record-keeping, cost management, and performance standards
9. Principal's Obligations: Responsibilities including timely payment, access provision, and information supply
10. Time and Programme: Project timeline, milestones, and schedule management requirements
11. Variations: Process for handling changes to scope and their impact on costs and fee
12. Audit Rights: Principal's rights to audit costs and supporting documentation
13. Insurance and Liability: Required insurance coverage and liability limitations
14. Termination: Grounds for termination and financial settlement procedures
15. Dispute Resolution: Process for resolving disputes, including cost-related disagreements
16. General Provisions: Standard contract clauses including governing law, notices, and assignment
1. Performance Incentives: Optional provisions for performance bonuses or incentives, used when seeking to encourage cost savings or early completion
2. Guaranteed Maximum Price: Optional cap on total costs, used when requiring some cost certainty while maintaining cost-plus structure
3. Value Engineering: Procedures for identifying and implementing cost savings, used in larger projects
4. Procurement Procedures: Specific requirements for procurement of materials and subcontractors, used in larger projects
5. Quality Management: Specific quality control requirements and procedures, used in technical or complex projects
6. Environmental Compliance: Environmental management requirements, used when project has significant environmental aspects
7. Health and Safety: Detailed health and safety requirements, used when significant site works or hazardous activities involved
8. Confidentiality: Detailed confidentiality provisions, used when dealing with sensitive commercial information
1. Schedule 1 - Scope of Works: Detailed description of works or services to be provided
2. Schedule 2 - Fee Calculation: Detailed breakdown of fee structure, markup percentages, and calculation methods
3. Schedule 3 - Allowable Costs: Comprehensive list of what constitutes reimbursable costs
4. Schedule 4 - Key Personnel: List of key personnel and their charge-out rates
5. Schedule 5 - Required Insurance: Details of required insurance policies and coverage levels
6. Schedule 6 - Cost Reporting Templates: Standard forms for cost reporting and invoice submission
7. Schedule 7 - Programme: Project timeline and milestone dates
8. Appendix A - Supporting Documentation Requirements: Details of required documentation for cost verification
9. Appendix B - Rate Schedule: Schedule of agreed rates for labor, equipment, and materials if applicable
Construction
Engineering
Professional Services
Manufacturing
Research and Development
Infrastructure
Mining
Oil and Gas
Technology Implementation
Industrial Projects
Legal
Commercial
Procurement
Finance
Operations
Project Management
Risk Management
Contract Administration
Engineering
Cost Control
Commercial Manager
Project Manager
Contract Manager
Procurement Manager
Cost Controller
Quantity Surveyor
Construction Manager
Legal Counsel
Finance Manager
Operations Manager
Risk Manager
Chief Financial Officer
Engineering Manager
Technical Director
Commercial Director
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