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Cost Plus Contractor Agreement for Malta

Cost Plus Contractor Agreement Template for Malta

A Cost Plus Contractor Agreement under Maltese law is a specialized construction contract where the client agrees to reimburse the contractor for all approved project costs plus a predetermined percentage or fixed fee as profit. This agreement, governed by Maltese construction and contract law, including the Civil Code (Chapter 16) and Building Regulation Act (Chapter 513), establishes detailed mechanisms for cost tracking, markup calculations, reporting requirements, and payment procedures. It includes comprehensive provisions for project management, quality control, and regulatory compliance specific to the Maltese construction industry.

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What is a Cost Plus Contractor Agreement?

The Cost Plus Contractor Agreement is essential for construction projects in Malta where exact costs cannot be determined at the outset due to project complexity or uncertainty. This document, compliant with Maltese legislation including the Civil Code and Building Regulation Act, provides a flexible framework for managing construction projects while ensuring fair compensation for contractors. It's particularly suitable for complex construction projects, renovations, or works where scope may evolve during execution. The agreement includes detailed provisions for cost determination, markup calculation, payment procedures, quality control, and regulatory compliance. It addresses both the contractor's obligation to maintain transparent cost records and the client's right to audit and verify expenses. The document incorporates specific requirements under Maltese construction law and industry standards, making it appropriate for both local and international contractors operating in Malta.

What sections should be included in a Cost Plus Contractor Agreement?

1. Parties: Identification of the Client and Contractor, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, project overview, and confirmation of contractor's expertise and qualifications

3. Definitions: Definitions of key terms including 'Actual Cost', 'Markup', 'Reimbursable Expenses', 'Services', and other relevant terms

4. Scope of Services: Detailed description of the construction services to be provided by the contractor

5. Cost Structure and Markup: Definition of cost-plus pricing mechanism, including allowable costs and agreed markup percentage

6. Payment Terms: Payment procedures, timing, documentation requirements, and invoice verification process

7. Contractor's Obligations: Key responsibilities including record-keeping, reporting, quality standards, and compliance requirements

8. Client's Obligations: Client responsibilities including access, information provision, and timely review of documentation

9. Project Timeline: Project schedule, milestones, and completion dates

10. Changes and Variations: Process for handling changes to scope, costs, or timeline

11. Quality Control: Quality standards, inspection procedures, and acceptance criteria

12. Insurance and Liability: Insurance requirements, liability limitations, and indemnification provisions

13. Termination: Grounds and procedures for contract termination by either party

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction under Maltese law

15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

What sections are optional to include in a Cost Plus Contractor Agreement?

1. Performance Incentives: Include when the parties agree to bonus mechanisms for early completion or cost savings

2. Subcontractor Provisions: Required when the contractor will be engaging subcontractors

3. Environmental Compliance: Include for projects with significant environmental impact or requirements

4. Site Security: Necessary for projects in sensitive locations or with specific security requirements

5. Intellectual Property: Include when the project involves design work or proprietary methods

6. Force Majeure: Detailed force majeure provisions beyond standard clauses, particularly relevant for long-term projects

7. Financing Provisions: Include when project financing arrangements affect the contract structure

8. Warranties: Extended warranty provisions beyond statutory requirements

What schedules should be included in a Cost Plus Contractor Agreement?

1. Schedule A - Scope of Works: Detailed technical specifications and scope of construction works

2. Schedule B - Cost Components: Detailed breakdown of allowable costs, overhead items, and markup calculation methodology

3. Schedule C - Rate Card: Labor rates, equipment rates, and other standard cost items

4. Schedule D - Project Timeline: Detailed project schedule, milestones, and completion dates

5. Schedule E - Key Personnel: List of key contractor personnel and their roles

6. Schedule F - Required Insurance: Detailed insurance requirements and coverage levels

7. Schedule G - Forms and Templates: Standard forms for progress reports, change orders, and cost documentation

8. Schedule H - Health and Safety Requirements: Specific health and safety procedures and requirements

9. Appendix 1 - Site Information: Site details, access information, and any known site conditions

10. Appendix 2 - Permits and Licenses: Copies of relevant permits, licenses, and authorizations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malta

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions
Clauses


















































Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Property

Industrial Development

Residential Development

Energy

Healthcare Facilities

Education Facilities

Hospitality

Retail Development

Manufacturing

Relevant Teams

Legal

Finance

Procurement

Operations

Commercial

Risk Management

Compliance

Health and Safety

Project Management

Construction

Technical Services

Quality Assurance

Contract Administration

Relevant Roles

Project Manager

Construction Manager

Contract Administrator

Quantity Surveyor

Cost Controller

Legal Counsel

Finance Director

Procurement Manager

Risk Manager

Commercial Director

Operations Director

Site Supervisor

Chief Financial Officer

Construction Director

Technical Director

Compliance Officer

Health and Safety Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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