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Using a cost plus contract in Tasmania
A cost plus contract is entered into by a builder and customer when a fixed price can not be given at the time the contract is entered into. This is usually because the cost of materials and labour can not be easily quoted on until the works commence.
An HIA cost plus contract requires an estimate price for the project be included in the contract schedule – but it stipulates that any estimate provided is an estimate only.
Contained in this resource is guidance on what builders need to be aware of when providing an estimate. A poorly calculated or miscommunicated estimate may expose the builder to liability under Australian consumer laws, so this information can be used to avoid disputes and/or claims.
HIA offers a Tasmania cost plus contract that can be used by building practitioners based in Tasmania.
Access this resource now
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Who is it for?
Building Professionals
This resource is designed for builders and industry professionals who want to understand what cost plus contracts are, how they are used and how to avoid common issues.
What does it include?
- What a cost plus contract is
- Requirement to provide an estimated price
- How to calculate an estimated price
- Key contract provisions.