cost-plus contract

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Definitions from WordNet

Noun cost-plus contract has 1 sense

cost-plus contract - a contract in which the contractor is paid his total cost plus a stated percentage of profit
--₁ is a kind of contract

Definitions from the Web

Term: Cost-plus contract (Noun)

Description: A cost-plus contract is a legal agreement in which the buyer agrees to pay the seller for the cost of the project plus an additional amount as profit or fee. This type of contract is commonly used in construction or government contracts where the exact cost of the project cannot be determined upfront.

Sample sentence 1: The company entered into a cost-plus contract with a construction firm to build their new office building.

Sample sentence 2: The government awarded a cost-plus contract to a defense contractor to manufacture military equipment.