This podcast episode focuses on Cost Plus Contracts in construction, explaining their mechanics and various subtypes (Cost Plus Award Fee, Fixed Fee, Incentive Fee, Percentage Cost, and Fixed Rate). The host details the advantages (e.g., flexibility, transparency) and disadvantages (e.g., cost uncertainty, potential for disputes) for both clients and contractors, comparing them to fixed-price contracts. A case study illustrates a property development company converting an airplane hangar into retail space using a Cost Plus contract, highlighting the practical application and risk mitigation strategies. Listeners gain a clear understanding of these contracts and their suitability for specific project types.
