cost-plus contract

(redirected from Cost-Plus Contracts)
Also found in: Thesaurus, Financial, Encyclopedia.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.cost-plus contract - a contract in which the contractor is paid his total cost plus a stated percentage of profit
contract - a binding agreement between two or more persons that is enforceable by law
Mentioned in ?
References in periodicals archive ?
Define clearly what is "cost" in cost-plus contracts with vendors.
9) Both the construction manager at risk and cost-plus contracts employ design-build subcontractors for key trades such as mechanical, electrical, plumbing, fire protection, and exterior envelope.
They are sold on fixed-price or cost-plus contracts, which ensure the builders make their target profit margin after payments to designers, engineers and other contracted workers.
In 1971, David Packard supported the use of cost-plus contracts for development.
The traditional cost-plus contracts, in which vendors could bill the Pentagon when programs were delayed or went over budget, were out of vogue.
Cost-plus contracts provide that the contractor's actual out-of-pocket costs be reimbursed, plus an agreed-to percentage for profit.
The authors employ an economic theory framework to discuss how cost-plus contracts typically used during this phase have inadvertently reinforced the sources of contractor and government optimism bias.
This would be accomplished via cost-plus contracts, in which bidders were reimbursed for labor and materials, with a fixed fee for profit, plus overhead that funded research and marketing for new work (which created a significant barrier to entry for newcomers who didn't have existing contracts to help pay for their own R&D and bids).
The negotiations, which were expected to wrap up more than a month ago, are taking longer because the contract is structured as a fixed-price deal instead of the cost-plus contracts usually signed for the development of aircraft, a Lockheed official said.
The client was a minority government contractor who enjoyed cost-plus contracts providing various services at military installations.
Cost-plus contracts (both fixed and variable fee terms): Right to bill allowable costs every two weeks as work progresses.