[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-240730-105":53,"doc-detail-240730-en":127},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":120,"head_meta":122,"extra_data":124,"updated_unix":126},105,"en","model-residential-construction-contract-cost-plus-provisions-and-contract-terms","Model Residential Construction Contract - Cost Plus - Provisions and Contract Terms","","A model residential construction contract for single-family projects structured as a cost plus agreement. It allocates responsibilities between the Owner and Contractor, clarifies that pricing is not fixed or guaranteed maximum, and explains how reimbursable costs, monthly billings, and control estimates are handled. The contract commentary addresses party relationships, cost auditing, liquidated damages for late completion, bonds and insurance considerations, contractor warranty, post-completion claim notices under RCW 64.50, and the need for consistent revisions.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":36,"@type":70,"position":76},"https://docshare.wps.com/template/forms/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/model-residential-construction-contract-cost-plus-provisions-and-contract-terms/240730/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/model-residential-construction-contract-cost-plus-provisions-and-contract-terms/240730.png","ImageObject",442,249,{"name":88,"@type":89},"Adam","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-23","2026-09-11",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",9,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What makes this residential construction contract a cost plus agreement?","Question",{"text":109,"@type":110},"The Contractor estimates project costs, but the actual cost is determined by the Contractor’s real labor and materials expenses. The contract is not a fixed-price or guaranteed maximum price deal.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"How does the Owner get alerted if costs exceed the estimate?",{"text":114,"@type":110},"The Owner receives a “control estimate” and is entitled to notice when reimbursable costs exceed the control estimate by a specified percentage.",{"name":116,"@type":107,"acceptedAnswer":117},"What happens if the project is not completed by the required date?",{"text":118,"@type":110},"The Contractor must pay the Owner daily liquidated damages for late performance. 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This form contract document (the “Document”) does not constitute legal advice or recommendations and there is no substitute for careful review by the parties and their attorneys. The drafters, the Council, and the WSBA Construction Law Section are not responsible for any use of the Document.  \nThe following comments are intended to provide background information about some of the Document provisions. The comments do not modify the language of the Document:  \n1.  Relationship between the Parties: The Document contemplates that the Owner is supplying the Contractor with plans, specifications and/or design documents for the project. Without modification, this Document is not suitable for a design-build project.  \nEstablished case precedent holds that the Owner warrants that the plans and specifications are accurate and that, if followed, the plans and specifications are adequate to accomplish the purpose of the project. If there is a problem encountered that is attributable to the design, the Owner bears responsibility as between the Owner and Contractor.  \n2.  Cost Plus Contract: This Document is written to be a cost plus contract. It is not a “fixed price” contract. The Contractor estimates the project cost, but the actual project cost is ultimately determined by the actual costs of labor and materials supplied by the Contractor. The actual costs of construction may be higher, equal to, or lower than the cost estimated by the Contractor. This is not a “fixed price” or guaranteed maximum price under which the Owner is protected by a lump sum or guaranteed maximum amount. Rather, the Owner is responsible to pay for actual expenditures by the Contractor and for comparing expenditures to the amounts estimated by the Contractor. The Owner is to be provided a “control estimate” and is entitled to receive notice if the Contactor’s reimbursable costs exceed the control estimate by a certain percentage.  \n3.  Components of Costs: Different contractors have different billing practices. For instance, a Contractor’s listed hourly rate charged for an employee is usually not what the employee is actually paid. Therefore, the Document allows the parties to define reimbursable costs (Option A of Section 2.2) or identify such terms in an exhibit (Option B of Section 2.2). It is left to the parties to negotiate and agree upon what constitutes reimbursable costs and how much the Contractor will be paid for the Work.  \n4.  Cost Auditing: The Document permits the Owner to review the Contractor’s cost records (such as material purchase receipts, subcontractor invoices and labor costs) each time the Contractor submits a monthly progress billing. Because there is no fixed price or guaranteed maximum price, the Owner should carefully review payment applications and supporting documentation. In addition, lien release forms have been provided as Exhibits to the Document.  \n5.  Damages for Late Performance: The Document requires the Contractor to pay the Owner daily “liquidated damages” if the specified date of Substantial Completion is not achieved. Because the contract contains a waiver of consequential damages in Section 6.4, liquidated damages likely represent the Owner’s only remedy for late completion of the project. The parties must negotiate the amount of the daily rate.  \n6.  Bonds, Insurance, Registration: The Contractor and Owner are encouraged to contact their insurance agents before signing the contract to make sure all the insurance requirements can be met. The Contractor is required to provide insurance to insure the Work while in progress. Additionally, the Owner is encouraged to check the status of each potential contractor’s registration and insurance [with the Washi","cbCaiePWoapILvH6","https://ap.wps.com/l/cbCaiePWoapILvH6","pdf",181367,20,"English","# Relationship between the Parties\n## Owner-supplied plans and responsibility\n# Cost Plus Contract Structure\n## No fixed price or guaranteed maximum price\n## Control estimate and notice of overruns\n# Cost Components and Reimbursable Costs\n## Options for defining reimbursable costs\n# Cost Auditing and Payment Support\n## Monthly progress billing review\n## Lien release exhibits\n# Damages for Late Performance\n## Liquidated damages and daily rate\n# Bonds, Insurance, and Registration\n## Insurance requirements during the Work\n## Contractor registration and insurance checks\n# Contractor Warranty\n# Owner’s Notice of Claims After Completion\n## Washington statutory notice under RCW 64.50\n# Revisions and Consistency\n## Preventing contradictions across terms","[{\"question\":\"What makes this residential construction contract a cost plus agreement?\",\"answer\":\"The Contractor estimates project costs, but the actual cost is determined by the Contractor’s real labor and materials expenses. The contract is not a fixed-price or guaranteed maximum price deal.\"},{\"question\":\"How does the Owner get alerted if costs exceed the estimate?\",\"answer\":\"The Owner receives a “control estimate” and is entitled to notice when reimbursable costs exceed the control estimate by a specified percentage.\"},{\"question\":\"What happens if the project is not completed by the required date?\",\"answer\":\"The Contractor must pay the Owner daily liquidated damages for late performance. Because consequential damages are waived, liquidated damages are likely the Owner’s primary remedy for late completion.\"}]","Model Residential Construction Contract - Cost Plus - Provisions and Contract Terms | PDF",7]