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I have heard of the “cost plus” building concept, but how is the “fixed fee” idea different?

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I have heard of the “cost plus” building concept, but how is the “fixed fee” idea different?

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The “cost plus” building process is not a new concept. What is unique is the “fixed fee” idea. The usual “cost plus” process involves the total cost of building the home plus a percentage added as the General Contractor’s fee. The problem with the percentage method is that the more you spend on the home, the higher the General Contractor’s fee becomes. With this method, there is no incentive for the General Contractor to save you money. In fact the opposite is true. He would have more incentive to spend more money. With the “fixed fee” method our fee is “fixed” based on the size of the house. This removes the concern that as the “General Contractor,” RVR will run up the price of your house to increase our profits. Our focus in the home building process is to get you the most quality for your money.

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