cost-plus-fee agreement

cost-plus-fee agreement

An agreement under which the contractor (in an owner-contractor agreement) or the architect (in an owner-architect agreement) is reimbursed for his direct and indirect costs and, in addition, is paid a fee for his services. The fee is usually stated as a stipulated sum or as a percentage of cost.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.