Is the cost in "Cost plus fixed fee" the construction cost or the cost of the archi. firm needs to run the project?(Overhead+direct labor)?

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Chun Hin Pun

March 11, 2022 13:24

Is the cost in "Cost plus fixed fee" the construction cost or the cost of the archi. firm needs to run the project?(Overhead+direct labor)?

 

Thanks!

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  Andrew Russell March 12, 2022 21:28

  If you are looking at the construction type of Cost plus Fixed Fee, it is the cost of the materials and labor to install / construct / build the project plus a fixed fee for the GC to do the job. So, no matter if the cost of the project goes up or down, the GC gets paid the same fee.

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