Cost Plus construction contracts call for the owner to pay the actual cost of the work plus a negotiated fee to the contractor, which fee may be either a fixed amount or some percentage of the contractor’s cost. Cost plus contracts are typically used on projects where the scope of work is not fully known or completed, or where certain facets of the work are uncertain. It is imperative that a cost plus contract clearly define all items to be included as costs. The cost plus contract with a guaranteed maximum price (“GMP”) is almost identical to the cost plus contract except that in the cost plus with a GMP, the contractor commits to complete the scope of work for an amount not to exceed the guaranteed maximum price, thereby shifting the risk of excess construction costs to the contractor.