Definitions for cost-plus contract
This page provides all possible meanings and translations of the word cost-plus contract
a contract in which the contractor is paid his total cost plus a stated percentage of profit
A cost-plus contract, also termed a cost reimbursement contract, is a contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit. Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses. Cost-plus contracts first came into use in the United States during the World Wars to encourage wartime production by large American companies.
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"cost-plus contract." Definitions.net. STANDS4 LLC, 2015. Web. 24 May 2015. <http://www.definitions.net/definition/cost-plus contract>.