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The Cost Plus Construction Agreement is designed for construction projects in England and Wales where traditional fixed-price contracts may not be suitable due to uncertain scope or complexity. This contract type provides transparency in costs while allowing for flexibility in project execution. It is particularly relevant for complex renovations, emergency works, or projects where the scope may evolve. The agreement includes comprehensive provisions for cost reporting, verification procedures, and fee calculations, while ensuring compliance with UK construction legislation. The document typically includes detailed schedules for rates, works specifications, and reporting requirements.

1. Parties: Identification and details of the contracting parties (Employer and Contractor)

2. Background: Context and purpose of the agreement, including project overview

3. Definitions: Key terms used throughout the agreement including Cost, Fee, Prime Cost, and Reimbursable Expenses

4. Scope of Works: Detailed description of construction works to be performed and deliverables

5. Cost Plus Mechanism: Definition of costs, calculation of contractor's fee, and markup percentages

6. Payment Terms: Payment procedures, timing, and mechanisms including interim payments and final account

7. Duration and Programme: Project timeline, completion dates, and milestone requirements

8. Contractor's Obligations: Key responsibilities including workmanship, materials, and compliance with laws

9. Employer's Obligations: Key responsibilities including site access, permits, and information provision

10. Variations: Procedures for changes to scope and corresponding cost implications

11. Quality and Inspection: Quality standards, testing requirements, and inspection procedures

12. Health and Safety: Health and safety obligations and CDM Regulations compliance

13. Termination: Grounds and procedures for contract termination

14. Dispute Resolution: Procedures for resolving disputes including adjudication and litigation