Understanding the Cost Reimbursable or Cost-Plus Contract

Description

This Skill Bit explains how this contract type reimburses contractors for actual costs plus a fee, offering flexibility for projects with evolving scopes or uncertainties. Effective management requires precise cost tracking, transparent reporting, and strong budget oversight to prevent cost overruns and ensure project success. This approach allows for adaptability but demands a high level of communication and financial management from both the contractor and project owner.

Duration approx. 4 Min.

Tier: proficiency