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The Cost Plus Construction Agreement is particularly suited for complex construction projects in Nigeria where the scope may evolve during execution or where exact costs are difficult to predict at the outset. This contract type is commonly used in large-scale infrastructure, industrial, and commercial construction projects throughout Nigeria, especially when flexibility is needed in the scope of work. The agreement provides detailed mechanisms for cost verification, contractor's fee calculation, and project management procedures, while ensuring compliance with Nigerian construction laws, local content requirements, and industry regulations. It includes specific provisions for cost reporting, audit rights, and change management, making it suitable for projects requiring transparent cost tracking and collaborative project execution. The document addresses key aspects of Nigerian construction practice, including requirements for local content, environmental compliance, and labor laws.

1. Parties: Identification of the Owner/Employer and Contractor, including full legal names and addresses

2. Background: Context of the agreement, project overview, and basis for entering into the contract

3. Definitions and Interpretation: Defined terms used throughout the agreement and rules of interpretation

4. Scope of Work: Detailed description of the construction work to be performed by the Contractor

5. Cost Structure and Payment: Definition of Cost Plus methodology, including direct costs, contractor's fee calculation, and markup percentages

6. Payment Terms and Procedures: Payment schedule, invoicing requirements, payment certificates, and payment timeline

7. Contractor's Obligations: General and specific obligations of the contractor, including quality standards and compliance requirements

8. Owner's Obligations: Responsibilities of the owner, including site access, permits, and approvals

9. Project Timeline: Construction schedule, milestones, and completion dates

10. Changes and Variations: Procedures for handling changes to scope, costs, or timeline

11. Quality Control and Inspection: Quality standards, inspection procedures, and acceptance criteria

12. Health, Safety and Environment: HSE requirements and compliance with Nigerian regulations

13. Insurance and Securities: Required insurance coverage and performance securities

14. Liability and Indemnification: Allocation of risks and responsibilities between parties

15. Force Majeure: Definition and consequences of force majeure events

16. Termination: Grounds and procedures for contract termination

17. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions under Nigerian law

18. Governing Law: Specification of Nigerian law as governing law and jurisdiction