Case for cost-plus contracting

This paper represents a case for cost-plus contracting by first discussing reasons why cost-plus contracting is not preferred by most owners. The final cost is not guaranteed, there is usually poor supervision by the contractor and the owner, there is a tendency for more charges by the end user, the labor force tend to drag out the jobs, etc. The writers then discuss how to properly manage a cost-plus contract by addressing each of the risks and making suggestions on how to mitigate them. The use of cost-plus contracts shows promise in getting more construction for the money.