cost-plus contracts

https://acornmetric.com/s/CKKMXff8kaFpIUWYahlql

Cost-plus contracts are agreements where the buyer reimburses the seller for all allowable expenses, plus an additional fee to ensure profit. They're common in construction or R&D when project scope is uncertain, offering flexibility but requiring trust and careful oversight to prevent runaway costs. While risky for buyers, they can foster collaboration and innovation.