Under a cost-plus-percentage contract, the contractor's fee is calculated as:
Explanation
In a cost-plus-percentage contract the contractor is reimbursed actual costs and earns a fee equal to an agreed percentage of them, so the fee rises as costs rise and the owner carries most of the cost risk. A fixed dollar amount settled in advance is the cost-plus-fixed-fee variant, which is how an owner caps that exposure. An hourly rate for the owner's representative is a reimbursable cost, not the contractor's fee. A per-day deduction for finishing late is liquidated damages and has nothing to do with how the fee is computed.
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