Page 94 - BASIC GUIDELINE FOR QS

Professional Practice: Guideline for Quantity Surveyor Chapter 3

Cost plus fixed fee
The contractor’s profit is predetermined by agreeing a fee for the work before the

commencement of the project.

Amount Total Amount
Cost Plus Fixed Fee
(RM) (RM)

1. Labour Cost 39,000
2. Material Cost 59,000

3. Sub Con Work Cost 10,000
4. Machinery and plant Cost 2,000 110,000
Add fixed fee 15,000

Project Cost 125,000

Table 3.2: Calculation of Cost plus Fixed Fee

Cost plus percentage
The contractor is paid the cost of labour, materials, plant, subcontractors and overheads,
and the sum is added a percentage to cover profits. The percentage is agreed at the

outset of the project.

Amount Total Amount
Cost Plus Percentage
(RM) (RM)

1. Labour Cost 40,000
Add 25% 10,000 50,000
2. Material Cost 60,000

Add 10% 6,000 66,000
3. Sub Con Work Cost 10,000
Add 5% 500 10,500

4. Machinery and plant Cost 2,000
Add 10% 200 2,200

Project Cost 128,700

Table 3.3: Calculation of Cost Plus Percentage

83