How does cost plus and fixed price work for remodeling jobs?
Interestingly, in the case of home remodeling, it is usually to the home owner’s advantage to have a cost plus contract over a fixed price contract. Cost Plus In the case of cost plus, the builder is not forced to guess what damage may lie below the surface. The builder can give a relatively firm price that does not include any unknown problems, however, very few remodeling jobs don’t have hidden damage that needs to be addressed. Fixed Price The only way a builder can protect himself with a fixed price bid on a remodeling job is to guess what damage might be encountered and charge for it. The builder has to guess high or risk losing money if serious damage is encountered. If more damage is uncovered than the builder guessed, he either has to 1) change his price, 2) lose money by fixing it or 3) do a cheap job “fixing” the damage. None of these are good choices for the homeowner. Willis Sinclair Homes will remodel your home at the very lowest cost. We will bid it either way. You can be
