While the “cost plus fee” contract paradigm may be ostensibly simple, there are multiple subtypes of cost-plus model contracts, and always evolving and complex contractual terms can create confusion and transform a simple concept into a morass of reimbursement challenges and disagreements leading to substantial disputes over costs. Cost reimbursable contract models are further complicated by exogenous and unanticipated or unpredictable cost factors, including the recent pandamic, tariffs, geopolitics, inflation, commodity markets and other supply chain issues. Our seasoned industry panelists all have significant experience with complex and nuanced issues and major disputes borne of the simple cost-plus concept, muddled by challenging contract language and further affected by difficult project circumstances or external factors.
