Professional Documents
Culture Documents
1
COST-PLUS-FIXED-FEE AGREEMENT
CONTRACTOR’S NAME:
ADDRESS:
PHONE:
FAX:
E-MAIL:
LIC #:
DATE:
OWNER’S NAME:
ADDRESS:
PROJECT ADDRESS:
I. PARTIES
This contract (hereinafter referred to as “Agreement”) is made and
entered into on this _______ day of _________ , 20 ___ , by and
between _____________________________ , (hereinafter referred to
as “Owner”); and __________________________, (hereinafter referred
to as “Contractor”). In consideration of the mutual promises contained
herein, Contractor agrees to perform the following work subject to the
terms and conditions below:
A. CONTRACTOR’S DUTIES
Contractor acknowledges and accepts the relationship of trust implicit in
this Construction Agreement. Contractor agrees to use good efforts,
judgment, and skills to complete the work according to the Contract
Documents referred to in this Agreement. Contractor agrees to furnish
competent construction management and administration and to
adequately supervise the work in progress. Contractor agrees to
complete the work in a timely and workmanlike manner.
B. CONTRACT DOCUMENTS
The Contract Documents consist of the following documents which are
hereby incorporated by reference into this Agreement:
1. This Agreement.
2. Any plans, specifications, or addenda referred to in the General Scope
of Work section above.
3. Other:
C. EXCLUSIONS
This Agreement does not include labor or materials for the following
work:
1. PROJECT-SPECIFIC EXCLUSIONS:
Owner (not Contractor) is to enter into contracts for all of the above-
mentioned services and provide direct payment to the people or
agencies contracted with for all of the services and permit fees in the
paragraph above.
F. CONTRACTOR’S FEE
Owner will pay Contractor the Contract Sum consisting of the Cost of the
Work as defined in Section III.H of this Agreement, plus, as
compensation for Contractor’s profit and overhead, a fixed fee of:
$________*.
G. PROGRESS PAYMENTS
Based upon applications for payment and all supporting documentation
submitted to Owner by Contractor on Thursday of: ___ every week /
___every other week, Owner shall make a progress payment to
Add up the total Cost of the Work as defined in Section III.H., below,
which has been performed during the payment period, add the
appropriate percentage of Contractor’s Fee, and the total of these two
amounts will be due each Friday to Contractor.
The percentage of Contractor’s Fee due with each payment by Owner will
be based on a “Schedule of Values” submitted by Contractor with this
Agreement which shows the relative value of each phase of the work,
e.g., foundation complete: 15% of Contractor’s Fee; framing complete:
30% of Contractor’s Fee; rough mechanical, rough electrical, rough
plumbing complete: 15% of Contractor’s Fee; etc.
H. COSTS TO BE REIMBURSED
Owner shall reimburse Contractor the Cost of the Work. The term “Cost
of the Work” shall mean costs necessarily incurred by Contractor in good
faith and in the proper performance of the work. The Cost of the Work
shall include the items set forth in this section.
WORKER RATE
1. Any general insurance costs and state and federal taxes of Contractor
(e.g., worker’s compensation, comprehensive general liability insurance,
auto insurance, health insurance, or labor burden expenses such as state
and federal employer taxes, etc.). Contractor has factored these costs
into the Rate Schedule for Contractor’s Personnel in Section III.H.1,
above, or these costs will be paid out of Contractor’s profit and overhead
percentage.
2. Travel time to and from the job site for Contractor and his employees.
Costs associated with travel time such as: gas, vehicle maintenance,
mileage payments, vehicle insurance, etc.
3. Costs to purchase, repair, and maintain Contractor’s tools, vehicles,
and equipment.
4. Cellular phone charges (unless specifically agreed to in writing by
Owner and Contractor).
K. ACCOUNTING RECORDS
Contractor shall keep full and detailed accounts and exercise such
controls as may be necessary for detailed and responsible financial
management of all aspects of this Agreement.
_____________________________________
_____________________________________
N. MISCELLANEOUS CONDITIONS
If work is stopped due to any of the above reasons (or for any other
material breach of contract by Owner) for a period of 14 days and Owner
has failed to take significant steps to cure his default, then Contractor
may — without prejudicing any other remedies Contractor may have —
give written notice of termination of the Agreement to Owner and
demand payment for all completed work and materials ordered through
the date of work stoppage and any other reasonable loss sustained by
Contractor, including Contractor’s Profit and Overhead at the rate of
____% on the balance of the incomplete work under the Agreement.
Thereafter, Contractor is relieved from all other contractual duties,
including all Punch List and warranty work.
R. WARRANTY
Thank you for choosing our company to perform this work for you. Your
satisfaction with our work is a high priority for us, however, not all
possible complaints are covered by our warranty. Contractor does
provide a limited warranty against material defects on all Contractor-
and subcontractor-supplied labor and materials used in this project for a
period of one year following Substantial Completion of all work. This
warranty covers normal usage only. You must contact the Contractor at
the address on page one of this Agreement in writing for warranty
service immediately upon discovering an item in need of warranty
service. If the matter is urgent, you must also call the Contractor and
send written notice of the need for warranty service. Failure to notify the
Contractor of the need for warranty service within ten days of discovery
of a warranty item may void this warranty. Additionally, Owner’s hiring of
others or direct actions by Owner or Owner’s separate contractors to
repair a warranty item are not covered by this warranty and will not be
reimbursed by Contractor.
Repair of the following items and related damages of every kind are
specifically excluded from Contractor’s warranty: problems caused by
lack of Owner maintenance; problems caused by Owner abuse, Owner
misuse, vandalism, Owner modification, or alteration; and ordinary wear
and tear. Damages resulting from mold, fungus, and other organic
pathogens are excluded from this warranty unless caused by the sole
and active negligence of contractor as a direct result of a construction
_________ ______________________
DATE CONTRACTOR’S SIGNATURE
_________ ______________________
DATE OWNER’S SIGNATURE
_________ ______________________
DATE OWNER’S SIGNATURE