The General Contractor Agreement Cost Plus Fee is designed for construction projects where flexibility and transparency are priorities. This agreement type is commonly used in the United States when project specifications are not fully defined at the outset or when market conditions make fixed-price contracts impractical. It provides detailed mechanisms for cost tracking, fee calculation, and change management while ensuring compliance with U.S. construction laws and regulations. The contract typically includes provisions for regular cost reporting, audit rights, and defines allowable costs versus contractor's fee. This format is particularly valuable for complex projects or those requiring fast-track scheduling, as it allows work to begin before all details are finalized.
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1. Parties: Identification of the Owner and General Contractor, including legal names and addresses
2. Background: Context of the agreement and brief project overview
3. Definitions: Key terms used throughout the agreement including Cost of Work, Fee, GMP if applicable
4. Scope of Work: Detailed description of contractor's responsibilities and deliverables
5. Cost Structure: Definition of costs, markup, and fee calculation methodology
6. Payment Terms: Billing procedures, payment schedule, and documentation requirements
7. Project Timeline: Start date, completion date, and major milestones
8. Insurance Requirements: Required insurance coverage and minimum limits
9. Termination Provisions: Conditions and procedures for contract termination
1. Guaranteed Maximum Price: Sets maximum price ceiling for project - use when owner wants cost certainty
2. Value Engineering: Process for cost reduction suggestions - use for complex projects with cost optimization potential
3. Bonus/Incentive Structure: Performance-based additional compensation - use when early completion or cost savings are prioritized
4. Design Responsibility: Extent of contractor's design obligations - use when contractor has design responsibilities
1. Schedule A - Scope of Work: Detailed description of work including drawings and specifications
2. Schedule B - Cost Breakdown: Itemized breakdown of costs and fee calculation
3. Schedule C - Project Schedule: Detailed timeline with milestones and deadlines
4. Schedule D - Required Insurance: Specific insurance requirements and limits
5. Schedule E - Key Personnel: List of key team members and their roles
6. Schedule F - Allowances: Predetermined budget amounts for specific items
7. Schedule G - Unit Prices: Agreed prices for potential additional work items
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