Cost$-$Plus Contracts $*$ The contractor $is$ reimbursed for all direct allowable costs $(materials,$ labour, travel$)$ plus $an$ additional fee $to$ cover overhead and profit. $*$ Unlike fixed$-$price contracts, cost$-$plus contracts put the burden $of$ risk $on$ the client. The contract does not indicate what the project $is$ going $tocost$ until the end $of$ the project. $*$ The inherent weakness $ofcost-$plus contracts has been compensated for $by$ a variety $of$ incentive clauses directed $at$ providing incentives $to$ contractors $to$ control costs, maintain performance, and avoid schedule overruns.