Regieovereenkomst
Cost-Plus Agreement
A cost-plus contract is an agreement under which the contractor executes the works against reimbursement of the actual costs incurred for labour and materials, plus a management fee.
Under a cost-plus contract, the client reimburses the contractor for actual costs incurred plus a pre-agreed surcharge for overhead and profit. This differs from a construction contract with a fixed contract sum, as the scope of the works is often not yet fully defined.
This contract type is primarily used in construction and renovation projects where the scope is uncertain or may change during execution. It provides flexibility, but requires accurate record-keeping and oversight by the client to prevent unintended cost increases.
In practice, a cost-plus contract is frequently combined with an estimate or a maximum amount to limit financial risk.
“The contractor carried out the renovation works pursuant to a cost-plus agreement, under which the client verified the invoices for materials and labour hours on a monthly basis.”
Related terms
Need legal advice?
Schedule a free consultation with one of our specialists