Most general contractors and subtrades enter into cost-plus contracts in order to perform a defined scope of work.

Question

Quizplus · Accepted Answer

Most general contractors and subtrades enter into fixed-price contracts for a defined scope of work, as it provides a clear, agreed-upon price for the project, reducing financial uncertainty for both parties. Cost-plus contracts are used but are less common and typically involve reimbursing the contractor for actual costs plus a fee, which is more flexible but can lead to less cost certainty.

Most General Contractors and Subtrades Enter into Cost-Plus Contracts in Order