Negotiated2NEGOTIATED COST PLUS
There are many different types of Negotiated Cost-Plus methods, such as Cost-Plus Fixed Fee, Cost-Plus Percentage or Cost-Plus Variable. Owners sometimes choose one of these Negotiated methods because of the flexibility in the pricing arrangement. It is particularly attractive to owners of commercial construction projects of large size and great complexity, or for projects that duplicate previous facilities sponsored by the owner. A cost plus a fixed fee or percentage is negotiated up front along with the budget and guaranteed maximum price (GMP). Advantages to the Negotiated method is the early guarantee of project costs, as well as the ability to overlap the design and construction phases of the project allowing for an accelerated delivery time.