Universiti Teknologi Malaysia is building a new campus at Skudai, johore, at a cost of more than $500 million, using a cost plus contract. The contract comes under the heading of negotiated contracts instead of normal open an selective tendering. The cost puls contract is divided into three types i.e. cost plus with fixed percentage fee, cost plus with fixed fee and cost plus with variable fee. The uthority decided to use the cost plus fixed percentage fee contract. The contact was awarded, on the 10th of March, 1983 to Kobena Sambu Construction Joint Venture. This thesis is aimed to examine and reappraise the cost plus contact, whether it can combat the inadequacy of the traditional contract to conclude the construction for most projects on time. It is hoped to present the findings and conclusions of the insights of the new major contract,e xperimented at the one and only site of its kind in this country. The study further concentrates on the concepts, policies and aprocedures used by Universiti Teknologi Malaysia in administering and managing this type of contract system. Pros and cons of this type of contract will be analysed. From the study, the general complexities involved during implementation is probed to some depth and thus creating room for discussion on improvements. It is hoped that the discussion will serve as a guideline to oweners and builders when they plan to adopt the cost plus fixed percentage fee typ[e of contract in the implementation of their future projects.