cost-plus contract

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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
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Higher concentration at the product-market level decreases the use of fixed-price contracts, the government's preferred contract type, and increases the reliance on cost-plus contracts, a method of billing that shifts the risk of cost overruns onto the government.
Army and navy officers were tough customers and though defense contracts often came with cost-plus contracts, there also existed provisions permitting the government to claw back excess profits.
Cost-plus contracts, especially, tend to evolve into greater financial expenditures than planned and go beyond the original contracted schedule.
The net synergies number is based on a gross savings target of approximately USD 270m, of which approximately 40% will be passed to our customers through cost-plus contracts.
Cost-plus contracts almost always run over budget and behind schedule.
For cost-plus contracts, the government pays all cost overruns and the contractor is virtually unaffected.
* Define clearly what is "cost" in cost-plus contracts with vendors.
UCSF has developed three Lean delivery models: a Lean design-build contract, a Lean construction manager at risk contract, and a Lean cost-plus contract. (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.