A Cost Plus Fixed Fee Contract is a fee structure by which the contractor charges the client for for the direct job costs (burdened labor costs, materials, and subcontractors) at cost as those costs are incurred, but the fee for the contractors overhead and profit is fixed at a set dollar amount. For the contractor Cost Plus Fixed Fee Contracts are often low risk, low reward, and high volume . A Cost Plus contract is similar but not the same thing as a Time & Materials Contract.
(adapted from Running a Successful Construction Company )
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