Contractor’s Fee Clause Samples
The Contractor’s Fee clause defines the amount and method of payment that the contractor will receive for performing the agreed-upon work. Typically, this clause specifies whether the fee is a fixed sum, a percentage of project costs, or based on time and materials, and may outline when and how payments are to be made. By clearly establishing the contractor’s compensation, this clause helps prevent disputes over payment and ensures both parties understand the financial terms of the agreement.
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Contractor’s Fee. When applicable, the Contractor’s fee for overhead and profit will be determined as follows:
1. A mutually acceptable fixed fee; or
2. If a fixed fee is not agreed upon, then a fee based on the following percentages of the various portions of the Cost of the Work:
a. For costs incurred under Paragraphs 13.01.B.1 and 13.01.B.2, the Contractor’s fee will be 15 percent;
b. For costs incurred under Paragraph 13.01.B.3, the Contractor’s fee will be 5 percent;
c. Where one or more tiers of subcontracts are on the basis of Cost of the Work plus a fee and no fixed fee is agreed upon, the intent of Paragraphs 11.07.C.2.a and 11.07.C.2.b is that the Contractor’s fee will be based on: (1) a fee of 15 percent of the costs incurred under Paragraphs 13.01.B.1 and 13.01.B.2 by the Subcontractor that actually performs the Work, at whatever tier, and (2) with respect to Contractor itself and to any Subcontractors of a tier higher than that of the Subcontractor that actually performs the Work, a fee of 5 percent of the amount (fee plus underlying costs incurred) attributable to the next lower tier Subcontractor; provided, however, that for any such subcontracted Work the maximum total fee to be paid by Owner will be no greater than 27 percent of the costs incurred by the Subcontractor that actually performs the Work;
d. No fee will be payable on the basis of costs itemized under Paragraphs 13.01.B.4, 13.01.B.5, and 13.01.C;
e. The amount of credit to be allowed by Contractor to Owner for any change which results in a net decrease in Cost of the Work will be the amount of the actual net decrease in Cost of the Work and a deduction of an additional amount equal to 5 percent of such actual net decrease in Cost of the Work; and
f. When both additions and credits are involved in any one change or Change Proposal, the adjustment in Contractor’s fee will be computed by determining the sum of the costs in each of the cost categories in Paragraph 13.01.B (specifically, payroll costs, Paragraph 13.01.B.1; incorporated materials and equipment costs, Paragraph 13.01.B.2; Subcontract costs, Paragraph 13.01.B.3; special consultants costs, Paragraph 13.01.B.4; and other costs, Paragraph 13.01.B.5) and applying to each such cost category sum the appropriate fee from Paragraphs 11.07.C.2.a through 11.07.C.2.e, inclusive.
Contractor’s Fee. When all the Work is performed on the basis of cost-plus, Contractor’s fee shall be determined as set forth in the Agreement. When the value of any Work covered by a Change Order for an adjustment in Contract Price is determined on the basis of Cost of the Work, Contractor’s fee shall be determined as set forth in Paragraph 12.01.C.
Contractor’s Fee. 8.1 Contractor’s fee shall be set forth in each Project Agreement.
A. For all Pre-Construction Phase Services, including providing value engineering services, reviewing Construction Documents for constructability, assisting and meeting with Design Professional during the various design phases, and preparing cost estimates Monthly installment payments of the total lump sum compensation and reimbursement for reimbursable expense items (subject, however, to the “not to exceed” caps on such items)] shall be based upon the percent completion of the designated portion of the Pre-Construction Phase Services for each particular month as determined by Owner and an itemized statement of reimbursable expenses incurred for such month, respectively, and Owner’s receipt of Contractor’s written invoice for such payment. Contractor’s invoices shall be in a form acceptable to Owner and be accompanied by such other information, documentation, and materials as Owner may require. The final invoice shall not be submitted until either (i) the GMP is executed for the entire Work, or (ii) the parties fail to reach agreement on the GMP Amendment and Owner elects to terminate the Contract as hereafter, whichever occurs first.
Contractor’s Fee. 1. When the Work as a whole is performed on the basis of cost-plus-a-fee, then:
a. Contractor’s fee for the Work set forth in the Contract Documents as of the Effective Date of the Contract will be determined as set forth in the Agreement.
b. for any Work covered by a Change Order, Change Proposal, Claim, set-off, or other adjustment in Contract Price on the basis of Cost of the Work, Contractor’s fee will be determined as follows:
1) When the fee for the Work as a whole is a percentage of the Cost of the Work, the fee will automatically adjust as the Cost of the Work changes.
2) When the fee for the Work as a whole is a fixed fee, the fee for any additions or deletions will be determined in accordance with Paragraph 11.07.C.2.
2. When the Work as a whole is performed on the basis of a stipulated sum, or any other basis other than cost-plus-a-fee, then Contractor’s fee for any Work covered by a Change Order, Change Proposal, Claim, set-off, or other adjustment in Contract Price on the basis of Cost of the Work will be determined in accordance with Paragraph 11.07.C.2.
Contractor’s Fee. The CONTRACTOR’s fee for overhead and profit shall be determined as follows:
Contractor’s Fee. The Contractor’s additional fee for overhead and profit shall be determined as follows:
1. a mutually acceptable fixed fee; or
2. if a fixed fee is not agreed upon, then a fee based on the following percentages of the various portions of the Cost of the Work:
Contractor’s Fee. The CONTRACTORS Fee allowed to CONTRACTOR for overhead and profit shall be determined as follows:
Contractor’s Fee. When all the Work is performed on the basis of cost-plus, CONTRACTOR’s fee shall be determined as set forth in the Agreement. When the value of any Work covered by a Change Order or when a Claim for an adjustment in Contract Price is determined on the basis of Cost of the Work, CONTRACTOR’s fee shall be determined as set forth in paragraph 12.01.C.
Contractor’s Fee. The Contractor’s Fee is the fee referred to in Article A-5 of the Agreement – CONTRACTOR’S FEE.
Contractor’s Fee. 5.1 The Contractor’s Fee is a fixed fee and is included in the Cost of the Work.