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cost-plus-percentage-of-cost contract (Cost plus a percentage of cost is a method of pricing contractors use when drafting contracts with clients when they cannot provide a final cost at the time of the contract. These contracts specify how they can determine the cost of the project is without calculating the cost. At the outset of the project, the client agrees to pay for all materials the contractor purchases to complete the project. The client also agrees to pay a set percentage of those costs directly to the contractor as profit. Then, the contractor splits those funds between overhead costs and labor.  indeed.com) |
