Quote:
Originally Posted by ACE
Cost Plus is the way to go if the builder lets you handle procurement of goods and materials.
Otherwise there is no incentive for him to get you the 'best price' from his suppliers.
Owner-Building is definitely the way to go, if you can afford it.
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This is backwards - in a fixed price or lump sum building contract there is more incentive for the builder to get the best possible price from suppliers as the cheaper he gets things for the higher his profit margin - when costs blow out he doesn't get any more money from you and so his profit margin is reduced. But if he does get things cheaper, these savings are not passed on.
Cost Plus is really only a good way to do things if you are able to get most of your trades and materials dirt cheap - if you leave it all up to the builder it is to his benefit if things cost more. Your bear all the risks in cost plus
Blues, out of interest, can i ask why you are opting for a cost plus contract?