A cost plus contract is most appropriate in projects of complex nature which have no clear costs to be incurred like a custom home or renovations which come with surprises. This contract provides flexibility whereby project details are not well understood at the beginning. It is also helpful either in times when quality and craftsmanship are of prime concern since contractors will not lower their prices to fit a fixed price. Nevertheless, clients should remain so engaged and keep track of expenditure to prevent unforeseen rises in budget.