cost-plus contracts

https://getcostpluscontractsfinder.almoheet-travel.com/understanding-cost-plus-contracts-in-government-contracting

Cost-plus contracts are agreements where the contractor is paid for all allowed expenses plus an extra payment to allow for a profit. I see them used often in construction or R&D projects where the full scope isn't known upfront. The client covers materials, labor, and overhead, then adds a fee—like a percentage or fixed amount. This reduces risk for the contractor but requires strong trust and oversight from the client, since costs can balloon if not managed well.