Hearthstone's Fee is 23% of the Cost of the Work. There is no Fee on General Conditions or Principal Time. The Fee is billed on the same invoice as the costs it applies to. Owner pays actual documented cost plus the Fee. Every dollar amount in the estimate is a projection, not a fixed price or a guaranteed maximum.
| Description | Direct Costs | 23% Fee | Invoice | Status |
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1. This is a cost-plus contract. You pay actual documented cost plus the 23% Fee. The figures here are Exhibit A projections.
2. General Conditions ($49,150 projected) are billed in four equal installments of $12,287.50, with no Fee. If the project runs past four months, each added month is billed at $12,287.50.
3. Principal Time is billed at $175/hour on actual hours, with no Fee, capped at 100 hours unless you approve more in writing.
4. Allowances and options are projected costs, billed at actual documented cost plus the Fee. Work in Exhibit A that is not performed is not billed.
5. Discounts, rebates and credits Hearthstone receives are credited to you at cost, and the Fee on the credited amount is credited too.
6. You may audit the project cost records on five working days' written notice.