I think the sub could charge the contractor what ever rate the contractor agreed to even in retrospect. There would be nothing illegal on the sub side to submit a change order adjusting the rate from $80 an hour to $100 per hour getting it signed off and then billing and being paid at the revised rate. If you inflated hours or material costs that would be fraudulent but charging an increased rate you likely would be okay.
On the contractor side though this might break the terms of the cost plus contract because to protect yourself in a cost + you should have an agreed rate sheet and an agreed material mark up.
If the contracts are well crafted what is being proposed should be fraudulent.
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