Cost plus contracts – Heaven can wait with Lex Orange

In this session, Lex Orange explains what a cost plus contract is, how it differs from project delivery methods, and the key decisions involved when using this type of contract, including actual costs, builder’s margin, and other commercial considerations. 

He explores the advantages and disadvantages of cost plus contracts, particularly how risk is allocated between the builder and client, highlights important contract clauses to review, and discusses alternative reimbursement models that may be more suitable in different situations.

Learning Objectives: from this session, you will learn about:

1. The meaning of “cost plus contract” and the available options
2. “Pros and cons” of cost plus reimbursement model
3. “Cost plus projects” and alternatives for cost plus projects

Action Items: after this session you should:

1. Interrogate: How often do you encounter a “cost plus project”? What are the alternatives?
2. Prepare: Prepare your contract and your financial information
3. Engage: Engagement strategy with a potential “cost plus client”