Over the past decade, our company has seen a greater share of work authorized using a cost plus a fee (or cost plus) with a guaranteed maximum price (GMP) contracting strategy. In simple terms, this type of contract is an agreement to pay costs plus profit. The fixed costs include materials and labor along with indirect costs known as overhead.
10 Tips on How to Handle Cost Plus Contracts
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About the Author
Matt Van Fossen
Matt Van Fossen is the Vice President of Finance for Rosendin Electric and has been with the company since 2003. He graduated from California State University Chico with a degree in finance and started in construction finance with the Kiewit Pacific Company in 1994. A member of CFMA since 2009, he belongs to the Silicon Valley Chapter.
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