Addendum D Cost Plus Contract 10 15 DOC Form
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People also ask
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What is a disadvantage of a cost-plus fixed-fee contract?
While cost-plus contracts offer notable advantages, they also come with certain drawbacks. Potential for Cost Overruns: Since the owner shoulders the burden of all direct costs, there's a greater risk of the project exceeding the initial budget.
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What is a cost-plus contract document?
A cost-plus contract is a construction agreement that requires reimbursement for project costs as well as a markup that covers the contractor's overhead and profit. In other words, the name is a short-hand way of remembering what the contract covers: project costs plus contractor markup.
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Is cost-plus percentage of cost illegal?
The CPPC contract is illegal in Government contracting. A CPPC contract can occur in any situation where the contractor is allowed to increase fee by increasing cost, thereby creating a negative cost control incentive.
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What is the addendum to a contract agreement?
What is an addendum? A contract addendum is a post-contract attachment that modifies, alters, or changes some of the terms of a previously established contract. Typically, this adds something new to a preexisting document. Once all parties in a contract agree to an addendum, it becomes a part of the new contract.
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