re: Cost plus building

quote:

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I’m considering hiring a contractor who wants to do the job on a cost plus basis.

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Why are you stuck on this contractor? Do you trust him more than others? Just like him?

Based on the amount of responses in this thread and the level of detail involved to try to “keep him honest”, you may be better off with a flat-fee contractor, a consultant, or self-contracting.

A flat-fee builder is similar to what one poster suggested, you effectively pay him a single lump sum based on projected cost. His fee won’t change, but you still pay invoices on materials and labor.

A consultant is similar, except he doesn’t handle any of the material or labor or hiring. He simply serves as an “inside” contact to help you line up subs, estimate costs, and evaluate bids. All the decisions and hiring are on you.

Self-contracting is a good option if you have the time and contacts to get the subs. Your direct pricing will not be as good, but your not paying the overhead of a GC.