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cost-plus contract
(redirected from Cost-Plus Contracts)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.
cost-plus contract [¦kȯst ′pləs ‚kän‚trakt]
(engineering)
A contract under which a contractor furnishes all material, construction equipment, and labor at actual cost, plus an agreed-upon fee for his services.


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But, the actual contract costs on these fixed-price contracts ballooned by 36%, which is more than the average cost overruns on cost-plus contracts for major weapons systems.
The negotiations, which were expected to wrap up more than a month ago, are taking longer because the contract is structured as a fixed-price deal instead of the cost-plus contracts usually signed for the development of aircraft, a Lockheed official said.
These are not subject to as rigorous auditing as cost-plus contracts.
 
 
 
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