FORM OF PROPOSAL FOR A COST-PLUS CONTRACT

 

To M/s_____________________Dear Sirs,

All materials which are on the premises are to be used as far as possible in the work. All materials suppled by us are to be invoiced to you at current market prices, plus_______ per cent (___________%) for profit. Labour to be charged to you at Rs______per hour for plumbers’ time and, if any helpers are required, this time to be charged to at the rate of______% per hours. We expect that the total cost of the work will be in the neighbourhood of Rs______ but it is distinctly understood that the price is merely an approximate one and not binding in any way, shape, or manner.

Please confirm your acceptance of the above proposal.

Yours etc.