The Cost Plus Contract Form is specifically designed for projects in Canadian jurisdictions where the final costs cannot be accurately predetermined due to project complexity, uncertainty, or evolving scope. This contract type is particularly suitable for large-scale construction, engineering, or consulting projects where flexibility in cost management is essential. The document provides comprehensive coverage of cost definition, markup calculations, payment terms, and audit rights, while ensuring compliance with Canadian federal and provincial regulations. It includes specific provisions for GST/HST considerations, provincial payment legislation, and industry-specific requirements. The Cost Plus Contract Form is structured to protect both parties' interests while maintaining transparency in cost reporting and verification processes.
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1. Parties: Identification of the contracting parties
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement, including specific cost-related definitions
4. Scope of Work: Detailed description of services or work to be performed
5. Cost Definition and Components: Detailed breakdown of what constitutes allowable costs
6. Fee Structure and Markup: Specification of the agreed-upon markup or fee percentage
7. Payment Terms: Timeline and process for invoicing and payment
8. Cost Control Procedures: Processes for managing and controlling costs
9. Documentation Requirements: Required cost documentation and record-keeping obligations
10. Audit Rights: Client's rights to audit costs and related records
11. Project Management: Management structure and reporting requirements
12. Term and Termination: Duration of the agreement and termination provisions
13. Insurance and Liability: Required insurance coverage and liability allocation
14. Confidentiality: Protection of confidential information
15. Dispute Resolution: Process for resolving disputes
16. General Provisions: Standard boilerplate clauses including governing law, notices, etc.
1. Performance Incentives: Optional bonus structure for meeting or exceeding performance targets
2. Guaranteed Maximum Price: Optional cap on total costs, used when hybrid cost-plus/GMP approach is desired
3. Value Engineering: Procedures for identifying and implementing cost savings
4. Material Procurement: Specific procedures for procurement when materials are a significant cost component
5. Subcontractor Management: Procedures for managing subcontractors when applicable
6. Force Majeure: Provisions for handling unforeseen events, if not covered in general provisions
7. Environmental Compliance: Special environmental requirements if applicable to the work
8. Quality Control: Specific quality control requirements beyond standard scope
9. Site Access and Security: For projects requiring specific site access protocols
10. Technology and IP Rights: When intellectual property is created or used in the work
1. Schedule A - Scope of Work: Detailed description of work to be performed
2. Schedule B - Fee Calculation: Detailed breakdown of fee calculation methodology
3. Schedule C - Allowable Costs: Comprehensive list of allowable and non-allowable costs
4. Schedule D - Key Personnel: List of key personnel and their rates
5. Schedule E - Required Documentation: Templates and forms for cost reporting
6. Schedule F - Project Schedule: Timeline and milestones
7. Schedule G - Insurance Requirements: Detailed insurance specifications
8. Schedule H - Rate Sheet: Standard rates for labor, equipment, and materials
9. Appendix 1 - Cost Reporting Templates: Standard forms for cost reporting and invoicing
10. Appendix 2 - Quality Control Standards: Specific quality control requirements and standards
Relevant legal definitions
Clauses
Relevant Industries
Construction
Engineering
Consulting
Manufacturing
Energy
Mining
Infrastructure Development
Technology Services
Research and Development
Industrial Projects
Commercial Development
Defense Contracting
Relevant Teams
Legal
Finance
Procurement
Operations
Project Management
Commercial
Risk Management
Compliance
Business Development
Contract Administration
Relevant Roles
Project Manager
Contract Administrator
Chief Financial Officer
Commercial Manager
Legal Counsel
Cost Controller
Procurement Manager
Operations Director
Construction Manager
Finance Director
Risk Manager
Quantity Surveyor
Business Development Manager
Compliance Officer
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