Cost-Plus Construction Contracts: Change Orders, Audit Provisions, Negotiating Disputes, Termination

Description

Once presented with a new construction project, one of the first decisions to address is the price structuring. Cost-plus construction agreements provide more flexibility in circumstances with significant unknowns. Counsel and clients must prepare to examine the project to determine the advantages and disadvantages of such use.

Construction counsel should work with key partners to develop a cost-plus agreement that addresses the risks of disorganization and sets forth explicit requirements for change orders. Cost-plus construction contracts should also include detailed audit provisions to ensure payment requirements are met.

Most construction industry associations provide standard form agreements. However, counsel must know the proper terms to negotiate and understand the intricacies of termination so that their clients can achieve their goals.

Listen as our panel of construction practitioners addresses the ins and outs of cost-plus contracts and provides guidance on when to utilize these agreements. The panel will discuss critical clauses, means of avoiding disorganization, the avoid process, and how and when to attempt termination.