Regiebasis
cost-plus basis
Cost-plus basis is a contractual arrangement under which the contractor performs the work under the direction of the principal and is remunerated on the basis of the actual costs incurred plus a fee.
Contracting on a time-and-materials basis means that no fixed price is agreed for the works. Payment is made on the basis of the actual hours worked, materials used and any ancillary costs, often increased by a profit margin or hourly rate.
This approach is relevant where the scope of the works remains uncertain at the time the contract is concluded or where flexibility and modifications during performance are required. The client retains greater control over the method of execution.
In practice, time-and-materials contracting is frequently used for renovation or repair works in which unforeseen circumstances may arise and progress is closely supervised.
“The kitchen renovation was carried out on a time-and-materials basis, so that all additional work was charged on an hourly basis.”
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