The Cost Plus Contractor Agreement is designed for projects where exact costs cannot be predetermined or where flexibility in scope is required. Common in complex construction and engineering projects under English and Welsh law, this agreement type provides detailed mechanisms for cost verification, markup calculation, and payment procedures. It's particularly suitable for projects with uncertain scope, emergency works, or where transparency in costs is paramount. The agreement includes provisions for audit rights, cost reporting, and change management, while ensuring compliance with UK construction legislation and industry standards.
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1. Parties: Identification and details of the contracting parties (employer and contractor)
2. Background: Context of the agreement and general project information
3. Definitions: Key terms used throughout the agreement
4. Scope of Works: Detailed description of the works to be performed
5. Cost Structure: Definition of allowable costs and fee/markup arrangements
6. Payment Terms: Payment procedures, timing, and documentation requirements
7. Contractor Obligations: Key responsibilities and duties of the contractor
8. Employer Obligations: Key responsibilities and duties of the employer
9. Duration and Programme: Project timeline and key milestones
10. Insurance and Liability: Required insurance coverage and liability provisions
11. Termination: Circumstances and procedures for contract termination
1. Performance Guarantees: Specific performance metrics and guarantees for large or complex projects requiring specific performance standards
2. Value Engineering: Procedures for cost optimization when cost reduction opportunities may arise during execution
3. Environmental Requirements: Specific environmental obligations for projects with significant environmental impact
4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant for longer-term projects or high-risk environments
1. Schedule of Rates: Detailed breakdown of labor and material rates
2. Project Specifications: Technical specifications and requirements
3. Programme of Works: Detailed project timeline and milestones
4. Schedule of Drawings: List of all relevant drawings and technical documents
5. Insurance Requirements: Detailed insurance specifications and certificates
6. Quality Control Procedures: Specific quality management requirements
7. Health and Safety Requirements: Detailed H&S procedures and requirements
8. Form of Applications for Payment: Templates for payment applications
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