Document background
The Contractor Cost Plus Contract is particularly suitable for complex construction projects in Hong Kong where the exact scope or costs cannot be accurately determined at the outset. This contract type is commonly used in scenarios involving renovation works, emergency repairs, or projects with significant uncertainties. The document incorporates Hong Kong's specific legal requirements and construction industry practices, including compliance with the Buildings Ordinance and Construction Workers Registration Ordinance. It provides detailed mechanisms for cost calculation, verification procedures, markup structures, and payment terms, while establishing clear audit rights and documentation requirements. The contract is designed to protect both parties' interests while maintaining transparency in cost management and ensuring fair compensation for the contractor's services. It includes specific provisions for dispute resolution under Hong Kong law and addresses local industry standards and practices.
