Cost-Plus Contract Fundamentals

• Overview
• Credits

Understand the various aspects of cost-plus contracting as well as common issues that may arise.This topic will provide a guide to when and how to use cost-plus contracts for construction projects. The information provided will include bidder identification, solicitation methods, evaluation criteria and methods, trade and subcontractor issues, administration of cost-plus contracts, payment issues, risk allocation issues and post-construction auditing. We will then look at key contract provisions associated with cost-plus contracting, how to manage costs in cost-plus contracts and finally how to protect ownership from unscrupulous contractors.

Authors

Agenda

What Is a Cost-Plus Contract?

• Best Use

• Significant Features

Administration of Cost-Plus Contracts

• Role of the Architect

• Change Orders

• Interim Audits

• Payment

Disputes Under Cost-Plus Contracts

• Auditing the Project

• Auditing the Contract

Cost-Plus Contracts and Fraud Issues

• Fighting Collusion and Kickbacks

• Bid Rigging and Collusion

• Fraud Examples

The Future of Cost-Plus Contracts

• Transparency, Scrutiny, and Litigation

• Increasing Criminalization of the Construction Industry

• Practical Considerations