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.
An Oklahoma Home Improvement or Remodeling Construction Contract — Cost Plus Basis of Payment is a legal agreement between a homeowner and a contractor for renovating or improving a property. This type of contract specifically outlines the terms and conditions of the project, including the cost structure and payment method. The Cost Plus Basis of Payment refers to a pricing model where the homeowner agrees to pay the contractor the actual cost of materials and labor performed, plus a predetermined percentage or fee for the contractor's overhead and profit. This type of contract can provide transparency and flexibility, allowing for adjustments to the project as it progresses. When drafting an Oklahoma Home Improvement or Remodeling Construction Contract — Cost Plus Basis of Payment, it is important to include certain key elements. These may include: 1. Identification of the Parties: The contract should clearly state the names and addresses of both the homeowner (referred to as the "Owner") and the contractor (referred to as the "Contractor"). 2. Scope of Work: A detailed description of the work to be performed should be provided, including specific plans, materials, and technical specifications. This section helps to clarify the expectations of both parties. 3. Cost Breakdown: The contract should outline the cost structure in detail. This includes the method used to calculate the construction costs, such as the actual cost of materials, labor, subcontractor fees, and any agreed-upon overhead and profit percentage. 4. Change Orders: The contract should address any potential changes or additions to the project that may arise after the initial agreement. Procedures for requesting and approving change orders, along with how they will be billed, should be clearly stated. 5. Payment Terms: The contract should specify the payment schedule, including the amount due at the beginning of the project (if any), progress payments, and the final payment upon completion. It should also outline any applicable penalties for late or non-payment. 6. Termination Clause: This provision outlines the conditions under which either party can terminate the contract, including any associated fees or penalties for early termination. 7. Insurance and Licensing: The contract should state that the contractor is licensed and insured, providing protection for both parties in case of accidents or damages during the project. Different types of Oklahoma Home Improvement or Remodeling Construction Contracts — Cost Plus Basis of Payment may vary depending on the specific requirements and preferences of the homeowners and contractors involved. However, the fundamental elements and structure remain the same, ensuring clarity and protection for all parties involved.An Oklahoma Home Improvement or Remodeling Construction Contract — Cost Plus Basis of Payment is a legal agreement between a homeowner and a contractor for renovating or improving a property. This type of contract specifically outlines the terms and conditions of the project, including the cost structure and payment method. The Cost Plus Basis of Payment refers to a pricing model where the homeowner agrees to pay the contractor the actual cost of materials and labor performed, plus a predetermined percentage or fee for the contractor's overhead and profit. This type of contract can provide transparency and flexibility, allowing for adjustments to the project as it progresses. When drafting an Oklahoma Home Improvement or Remodeling Construction Contract — Cost Plus Basis of Payment, it is important to include certain key elements. These may include: 1. Identification of the Parties: The contract should clearly state the names and addresses of both the homeowner (referred to as the "Owner") and the contractor (referred to as the "Contractor"). 2. Scope of Work: A detailed description of the work to be performed should be provided, including specific plans, materials, and technical specifications. This section helps to clarify the expectations of both parties. 3. Cost Breakdown: The contract should outline the cost structure in detail. This includes the method used to calculate the construction costs, such as the actual cost of materials, labor, subcontractor fees, and any agreed-upon overhead and profit percentage. 4. Change Orders: The contract should address any potential changes or additions to the project that may arise after the initial agreement. Procedures for requesting and approving change orders, along with how they will be billed, should be clearly stated. 5. Payment Terms: The contract should specify the payment schedule, including the amount due at the beginning of the project (if any), progress payments, and the final payment upon completion. It should also outline any applicable penalties for late or non-payment. 6. Termination Clause: This provision outlines the conditions under which either party can terminate the contract, including any associated fees or penalties for early termination. 7. Insurance and Licensing: The contract should state that the contractor is licensed and insured, providing protection for both parties in case of accidents or damages during the project. Different types of Oklahoma Home Improvement or Remodeling Construction Contracts — Cost Plus Basis of Payment may vary depending on the specific requirements and preferences of the homeowners and contractors involved. However, the fundamental elements and structure remain the same, ensuring clarity and protection for all parties involved.
