As we have seen, there are advantages and disadvantages to each - TopicsExpress

As we have seen, there are advantages and disadvantages to each type of contract you can have with the builder. Your experience will depend in large part upon how the contract is structured. Each combination of builder and homeowner will prefer a different type, depending on the trust level and expectations of each party; not to mention the type of project. Something that is brand new to the builder will make him favor the Time and Material much more than the fixed price. A house he has built 10 times in the last 5 years will make him favor the fixed price. You might favor T&M if you plan to do a lot of the work on the home to reduce costs. The Percentage contract is a middle road that may be an effective compromise. What do you prefer, and why?

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