Cost-Plus Rate in Procurement Law 2026 – Definition and Distinction

The cost-plus rate is a form of remuneration in construction in which services are billed according to actual expenditure. Distinction from unit prices.

Definition: A cost-plus rate (Regiepreis) is a form of remuneration in construction procurement law in which individual services are not billed at a fixed unit price but according to the actual expenditure on labour, materials and equipment.

Last updated: January 2026 · Legal basis: VOB/B § 2 para. 10; ÖNORM B 2110; BVergG 2018

What is a Cost-Plus Rate?

The cost-plus rate is a billing method for construction services in which remuneration is not calculated on the basis of pre-agreed unit prices but on the basis of the actual expenditure for working hours, material consumption and machine use. It is typically used for services that, due to their unpredictability or small quantity, cannot reasonably be divided into positions of the bill of quantities.

Scope of Application

Cost-plus rates are agreed in particular for ancillary and additional services whose extent cannot be foreseen at the time of contract conclusion.

Typical areas of use:

Unforeseen works during conversion and renovation measures
Smaller additional services not contained in the bill of quantities
Immediate measures in cases of damage
Services required as a result of the contracting authority's change orders

Procurement Law Classification

Cost-plus rates are permissible in public procurement law only under narrow conditions, since they touch on the principles of transparency and competition. The pricing law of the VOB/B (§ 2 para. 10) permits cost-plus labour works if this is expressly provided for in the contract or if special circumstances require this method of billing. In Austrian law, ÖNORM B 2110 regulates the corresponding modalities.

Contracting authorities must take care to agree cost-plus rates only in justified exceptional cases. Excessive use of cost-plus works can distort competition because the actual price is only established after the contract is awarded.

Distinction from Unit Prices

Feature	Unit Price	Cost-Plus Rate
Pricing basis	Pre-agreed per unit of quantity	Actual expenditure
Predictability	High	Low
Risk	With the contractor (quantity risk)	With the contracting authority
Use	Standard services	Unpredictable/small additional services

Related Terms

FAQ

Must cost-plus rates be shown in the bill of quantities? If cost-plus works are planned, the relevant hourly rates and surcharges should be recorded in the bill of quantities or in the contract conditions in order to ensure transparency.

Can a contracting authority subsequently order cost-plus works? Yes, in the case of change orders the contracting authority can order cost-plus works; the contractor must document and prove these.

Last updated: January 2026 All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.