cost-plus

[kawst-pluhs, kost-]

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.

cost-plus

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

Word History and Origins

Origin of cost-plus¹

First recorded in 1915–20

Example Sentences

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.

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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.

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This week, Nelson took aim at the agency’s reliance on such programs and the type of contracts, known as “cost-plus,” that keep money flowing to contractors even as they exceed the budget.

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As cost-plus contracts become more common, markup is a hot topic among homeowners.

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“It’s been a long road, but the Commission’s bold decision puts ‘cost-plus’ regulation in the rear view mirror,” said Ron Binz, former chairman of the Colorado Public Utilities Commission and expert for Blue Planet Foundation.

Read more on Washington Times