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 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

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

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.

From Washington Post

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

From Seattle Times

“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.

From Washington Times