Cost-Plus Contract

Let’s say you paint a house for your uncle. The one who hides money in the walls because he doesn’t trust banks. He says he'll pay you $500 and any expenses tied to the job. So all your paint, gasoline, and water bottles are paid on top of the money for the gig...the money that makes the job profitable.

A contract with expenses is called a Cost-Plus Contract.

This is different than your uncle just paying you $500, and you having to pay for your paint. That version is known as a fixed-price contract.