A cost-plus contract is one in which the purchaser agrees to pay the cost of all labor and materials plus an amount for contractor overhead and profit (usually as a percentage of the labor and material cost). This type of contract is often used when the scope of the work is undermined or highly uncertain and the kinds of labor, material and equipment needed are also uncertain. It is important that the contractor maintain complete records of all time and materials spent by the contractor on the work.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
New Hampshire Home Improvement or Remodeling Construction Contract — Cost Plus Basis of Payment is a legal agreement between a homeowner and a contractor governing the scope of work, payment terms, and other important details related to a construction project. When entering into this type of contract, it is crucial to include specific relevant keywords to ensure clarity and avoid any misunderstandings. Here is a detailed description of what a New Hampshire Home Improvement or Remodeling Construction Contract — Cost Plus Basis of Payment entails: 1. Introduction: The contract begins with an introduction that identifies the parties involved, including the homeowner (referred to as the "Owner") and the contractor (referred to as the "Contractor"). It should also state the project address and a brief overview of the home improvement or remodeling work to be performed. 2. Scope of Work: The contract should have a detailed description of the home improvement or remodeling project, including the specific tasks, materials, and standards to be followed. The scope of work can cover various aspects such as kitchen remodeling, bathroom renovation, flooring installation, or any other specific home improvement needs. 3. Cost Plus Basis of Payment: This contract will specify that the payment terms are on a "cost plus basis." This means the Contractor will be compensated for the actual costs incurred during the project, including labor, materials, permits, and subcontractor fees, with an additional percentage or fixed fee added to cover their profit. 4. Cost Breakdown: The contract should provide a breakdown of costs, including a detailed estimate of labor hours, hourly rates, material costs, and a complete list of subcontractors who will be involved. This breakdown should be as comprehensive as possible to establish transparency and fairness in the pricing structure. 5. Payment Schedule: The contract should clearly outline the payment schedule, including when and how payments will be made. It is common for cost plus contracts to require periodic invoices or draw requests, usually on a monthly basis, reflecting the actual costs incurred during that period. 6. Change Orders: If there are any changes or modifications to the original scope of work, the contract should specify a process for documenting and approving change orders. This may include submitted change order requests, review and acceptance procedures, and an updated cost breakdown reflecting the changes. 7. Insurance and Permits: The contract should mandate that the Contractor holds adequate insurance coverage, including general liability insurance and worker's compensation insurance, to protect both parties in case of accidents or damages during the project. It should also address the responsibility of obtaining necessary permits and compliance with local building codes. 8. Termination and Dispute Resolution: The contract should include provisions for termination, outlining the conditions under which either party can terminate the agreement. Additionally, it should mention the preferred method of dispute resolution, such as mediation or arbitration, to resolve any conflicts that may arise during the project. It is worth noting that there might be variations of the New Hampshire Home Improvement or Remodeling Construction Contract — Cost-Plus Basis of Payment, depending on specific project requirements, contractor preferences, or legal obligations. Consulting with an attorney or a construction professional is strongly advised to tailor the contract to the unique needs of the project.
