Cost-Plus Contract Lawyer
in Houston, TX.
Transparency in Pricing. Precision in Contracts.
Cost-Plus construction contracts offer owners flexibility and detailed cost tracking—but with flexibility comes risk. When reimbursement is tied to actual costs, success depends on well-defined terms, strong documentation, and clear limits on what counts (and what doesn’t).
At Elkhoury Law, I help owners, contractors, and construction managers negotiate and manage Cost-Plus construction agreements that protect your position—whether you're pricing hourly labor or reconciling a multi-phase infrastructure build.
Houston Cost-Plus Construction Contract Lawyer
In Houston’s fast-moving construction market, cost-plus construction contracts are a practical choice when scope is evolving, speed means everything, and/or site conditions are unpredictable. I regularly advise owners and contractors on these deals in commercial and industrial development in Harris County and beyond, when speed and adaptability matter more to the developer than hard bids. The key is structuring payment terms, caps, and documentation standards that won’t collapse under pressure.
What Is a Cost-Plus Construction Contract?
A Cost-Plus contract reimburses the contractor for actual, allowable project costs plus a negotiated fee. That fee can be:
A fixed fee;
A percentage of cost; or
Or performance-based, depending on the structure.
There are several variations of a cost-plus contract or project model, including:
Cost-Plus Fixed Fee
Cost-Plus with Guaranteed Maximum Price (GMP)
Cost-Plus with Incentive Fee
These agreements are often used for:
Projects with unknown scopes or fast-track schedules
Renovations, custom builds, or early-contractor-involvement models
Owners seeking more visibility into costs and subcontractor pricing
How Elkhoury Law Supports Cost-Plus Construction Projects
Cost-Plus sounds simple—“pay for what it costs,” plus a fee—but the details determine the outcome. I help clients ensure that their contracts sets clear rules on what’s reimbursable, who approves costs, and how disputes are resolved.
Contract Drafting & Negotiation
Drafting Cost-Plus contracts that clearly define:
Allowable vs. unallowable costs
Fee structures and shared savings options
Documentation and audit rights
Owner approval thresholds
Risk-shifting language for schedule or design impacts
Reviewing AIA, ConsensusDocs, or custom agreements to fit project type
Project Oversight & Payment Review
Advising during performance on pay applications, labor logs, and third-party invoices
Monitoring contingency usage and change order pricing
Helping owners avoid “death by timesheet” disputes
Counseling contractors on compliance with cost substantiation procedures
Dispute Resolution
Representing parties in disputes involving:
Reimbursement of non-allowable costs
Fee escalation or payment disputes
Cost auditing or recordkeeping issues
Accusations of inefficiency, delay, or bad faith billing
Handling disputes through mediation, arbitration, or litigation
Why Work with Elkhoury Law on Cost-Plus Construction Contracts?
Because in Cost-Plus deals, everything is negotiable—and everything is documentable. I help you draw the line between fair reimbursement and cost creep, and I bring legal clarity to contracts where the scope is evolving and the costs are fluid.
Whether you’re the one writing the checks or sending the invoices, I’ll help you define the rules before problems show up.
Serving Owners and Contractors Across Texas
Elkhoury Law delivers sharp, business-first counsel on Cost-Plus contracts for commercial, public, and private projects. If you’re considering a Cost-Plus structure, let’s make sure it works in your favor.
Texas Construction Law Library & Resources
Mechanic’s Liens - Chapter 53 of the Texas Property Code — The governing statute for filing and enforcing mechanic’s liens in Texas.
Texas Construction Trust Fund Act - Chapter 162 of the Texas Property Code — A powerful legal tool that protects subcontractors and suppliers from nonpayment.
Texas Prompt Pay Acts - Texas Property Code Chapter 28 (Private Projects) & Texas Government Code Chapter 2551 (Public Projects) — The laws that govern payment deadlines and interest penalties for private and public construction projects in Texas.
Contingent Payment Laws - Texas Business and Commerce Code Chapter 56 — Texas’s “pay-if-paid” and “pay-when-paid” laws that affect when and how subcontractors and suppliers can recover payment.
Contact a Harris County Cost-Plus Contract Lawyer
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