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Addendum D Cost Plus Contract 10 15 DOC Form

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[Music] right when you get into contracts you might often see two terms you might see cost-plus and you might see lump sum or fixed price and this is interesting because if you think about it let's say I make these these little glass white boards and I put you who is my wholesaler thank you very much for being my wholesaler and you're going to sell me these you're going to sell these things for me and our agreement is on a cost-plus relationship so what happens is normally it costs me $100 to produce this and this is what you base your math on you're also selling it for what hang on I'll sell it to you I'm selling it to you for 110 dollars normally that's a normal rate alright so we've got 10 percent increase set that cost plus cost plus 10 percent now if this thing changes this will also change our price so as the cost of materials go up the cost of wood the cost of glass start going up so does our price so with the tick's with the cost plus it relationship as the cost of generating t

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