Trust but verify. How to know the costs are legitimate on every invoice in a cost-plus fee project.
Contractors may resist providing a reconciliation of costs for each line item of an invoice in a form that's easy for an owner to review. But owners should make it clear early in the process that they will require the necessary information before any payments are made. This issue of Concrete Terms offers recommendations on how to avoid conflict with the contractor throughout the project and reduce the risk of overpaying.
Concrete Terms was created to give busy construction and real estate attorneys quick and practical information they can use to serve their clients.
Length: 3 pages (PDF 335 kB)