Case for Cost‐Plus Contracting
- 1 March 1988
- journal article
- Published by American Society of Civil Engineers (ASCE) in Journal of Construction Engineering and Management
- Vol. 114 (1) , 83-94
- https://doi.org/10.1061/(asce)0733-9364(1988)114:1(83)
Abstract
This paper represents a case for cost‐plus contracting by first discussing reasons why cost‐plus contracting is not preferred by most owners. The final cost is not guaranteed, there is usually poor supervision by the contractor and the owner, there is a tendency for more charges by the end user, the labor force tend to drag out the jobs, etc. The writers then discuss how to properly manage a cost‐plus contract by addressing each of the risks and making suggestions on how to mitigate them. The use of cost‐plus contracts shows promise in getting more construction for the money.Keywords
This publication has 1 reference indexed in Scilit:
- Contractual IncentivesJournal of Construction Engineering and Management, 1984