We have entered times of uncertainty and nobody likes
uncertainty, including the construction industry. For simplicity
there are generally two types of contracts in the industry:
1 – Cost Plus
These are contracts wherein an agreement is made between a
project owner and a contractor to reimburse the contractor for
expenses incurred andto add a specific additional payment for their
profit. This profit is usually stated as a percentage of the
contract's full price. These types of contracts are primarily
used in construction for projects where the project owner reduces
some of the contractor's risk related to expenses, thereby
providing the contractor with a degree of flexibility. The final
cost of the project is determined when the contractor provides to
the project owner proof of all related expenses, including direct
and indirect costs. To a contractor, they are immune to any
increase of expenses because they in theory will be reimbursed for
them and if anything,
