cost-plus

American  

[kawst-pluhs, kost-] / ˈkɔstˈplʌs, ˈkɒst- /

adjective

1. paid or providing for payment based on the cost of production plus an agreed-upon fee or rate of profit, as certain government contracts.

2. of or relating to a cost-plus arrangement or contract.

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cost-plus British  

noun

1. 1. a method of establishing a selling price in which an agreed percentage is added to the cost price to cover profit

   2. ( as modifier )

      cost-plus pricing

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Etymology

Origin of cost-plus

First recorded in 1915–20

Example Sentences

The market is running away as fast as it can from centralized, government-run, cost-plus space endeavors.

From The Wall Street Journal • Feb. 3, 2026

The current model is to give so-called "cost-plus" contracts to big heritage aerospace companies, such as Lockheed Martin and Boeing, which guarantee to pay the development costs and an agreed profit.

From BBC • Feb. 1, 2025

If she used cost-plus, she would give you a bill for anywhere between $4,400-$4,800, depending on the rate you agreed upon.

From Slate • Nov. 23, 2022

Boeing has often worked with the space agency through cost-plus contracts: agreements where the company receives funding from the agency to cover all development costs.

From The Verge • May 19, 2022

Contracting has gradually improved, as more oversight has been exercised and fewer cost-plus contracts have been granted; in addition, the use of Iraqi contractors has enabled the employment of more Iraqis in reconstruction projects.

From The Iraq Study Group Report by Iraq Study Group (U.S.)