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Contractor glossary

Cost-Plus: Definition for Contractors

A contract that bills the actual cost of the work plus an agreed fee or percentage, shifting cost risk toward the client.

What is Cost-Plus?

Cost-Plus. A contract that bills the actual cost of the work plus an agreed fee or percentage, shifting cost risk toward the client.

Why it matters to your pricing

Cost-plus fits uncertain scopes and high-trust relationships. Make sure the fee actually covers supervision and risk, not just profit.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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