Cost-plus contracts are very common in the construction industry. At it's core, a cost-plus contract represents a situation where a contractor is reimbursed for all of their construction-related expenses ("cost"), and also paid a specific amount for profit ("plus"). Of course, there are a lot of nuances when it comes to cost-plus contracting - and a recent article from the balance goes a long way to explain the ins and outs of cost-plus contracting.