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Cost Plus Construction Agreement for Singapore

Cost Plus Construction Agreement Template for Singapore

A Cost Plus Construction Agreement under Singapore law is a specialized construction contract where the owner agrees to pay the contractor for all actual costs incurred in the construction process plus an agreed-upon fee or percentage markup. This agreement is governed by Singapore's Building Control Act and Building and Construction Industry Security of Payment Act (SOPA), incorporating local construction regulations and payment security measures. It provides detailed provisions for cost calculation, markup determination, payment procedures, and project management requirements specific to Singapore's construction industry.

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What is a Cost Plus Construction Agreement?

The Cost Plus Construction Agreement is particularly suitable for projects where the exact scope or costs cannot be determined upfront, offering flexibility in project execution while maintaining cost transparency. Used extensively in Singapore's construction industry, this agreement type provides a framework for managing complex construction projects where scope changes are anticipated. It includes comprehensive provisions for cost tracking, fee calculation, payment mechanisms, and project management, all aligned with Singapore's regulatory requirements including the Building Control Act and SOPA. This agreement type is particularly relevant for projects requiring specialized work or where fast-tracking is necessary.

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

1. Parties: Identifies and defines the contracting parties

2. Background: Provides context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Work: Detailed description of construction work to be performed

5. Cost Plus Structure: Defines actual cost calculation and contractor's fee/markup

6. Payment Terms: Payment schedule, progress payments, and invoicing requirements

7. Time for Completion: Project timeline, milestones, and completion dates

8. Contractor's Obligations: Key responsibilities and duties of the contractor

9. Client's Obligations: Key responsibilities and duties of the client

10. Insurance and Indemnity: Required insurance coverage and indemnification provisions

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

1. Performance Bond: Security for performance, required for larger projects or when specified by client

2. Liquidated Damages: Pre-agreed damages for delay or non-performance, used when specific completion dates are critical

3. Green Building Requirements: Environmental and sustainability requirements for projects seeking green certification

4. Dispute Resolution: Specific dispute resolution procedures when parties want to specify alternative methods

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

1. Schedule of Rates: Detailed breakdown of labor and material rates

2. Project Specifications: Detailed technical specifications and requirements

3. Construction Drawings: Approved architectural and engineering drawings

4. Project Timeline: Detailed project schedule and milestones

5. Quality Assurance Plan: Quality control procedures and standards

6. Safety Management Plan: Site safety procedures and protocols

7. Insurance Certificates: Copies of required insurance policies

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

Singapore

Publisher

Ƶ

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions













































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Industries

Building Control Act (Chapter 29): Primary legislation governing building works and construction in Singapore, including building plan approval requirements and structural safety standards

Building and Construction Industry Security of Payment Act (SOPA): Regulates payment terms, progress payment provisions, and dispute resolution mechanisms in construction contracts

Workplace Safety and Health Act: Mandates safety requirements at construction sites, risk management obligations, and worker safety provisions

Environmental Protection and Management Act: Controls environmental aspects during construction including noise control and pollution prevention measures

Employment Act: Governs labor laws, working hours, conditions, and foreign worker regulations in Singapore

BCA Regulations: Building and Construction Authority regulations covering licensing requirements, quality standards, and green building requirements

PSSCOC: Public Sector Standard Conditions of Contract - relevant for public sector construction works

Singapore Standards (SS): National standards for construction specifications and quality control requirements

Professional Engineers Act: Governs requirements for engineering works and professional certifications

Companies Act: Regulates corporate governance requirements and contract formation principles

Contract Law: Common law principles and Unfair Contract Terms Act applicable to construction contracts

Insurance Act: Regulates mandatory insurance coverage including contractor's all-risk and professional indemnity insurance

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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