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Real Estate Glossary

What does Cost-Plus Contract mean?

A cost-plus contract is a type of construction contract in which the contractor is paid for the actual cost of the materials and labor used in a project, plus an additional fee (also known as a markup) for their services. The fee is typically a percentage of the total cost of the project, and it is intended to cover the contractor's overhead and profit. Cost-plus contracts are commonly used when the scope of a project is uncertain or when the owner wants to have more control over the project's budget.

Acknowledgment

Breach of Contract

Capital Expenditure

Caveat Emptor

Construction Documents

Covenants, Conditions and Restrictions (CC&Rs)

Estimated Gross Costs of Buying

Federal Style

Graduated-Payment Mortgage (GPM)

High-Rise

Loan Application

Net Lease

Passive Loss

Qualifying Ratios

Trans-Union

Utilities Availability (In a Lease)

Veterans Administration (VA)

Wraparound Mortgage

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Artur

Real Estate Assistant