A Cost-Plus Contract is a type of agreement where a contractor is reimbursed for their allowable expenses, plus an additional amount for profit. This means that the client pays for the actual costs incurred during the project, which can include materials, labor, and overhead, along with a predetermined fee or percentage as profit. These contracts are often used in projects where costs are difficult to estimate upfront, such as in construction or research and development. They provide flexibility for both parties, allowing for adjustments as the project progresses, but can also lead to higher overall costs if not managed carefully.