The third method of accounting for the contractor in #construction_contracts is the Cost Plus method.
In which the contractor carries out the required works, and the owner accounts him for the value of his purchases of materials or the value of labor and equipment, in addition to a percentage against the contractor’s administrative expenses, and then a percentage against the profits.
This method is not widely used in Saudi Arabia, and it has risks that both parties to the contract, whether the owner or the contractor, must know about.
