Builder contracts type 1: Fixed price. A fixed price contract is exactly what it sounds like. The advantage seems obvious--you know exactly what you are going to pay; but do you know exactly what you are getting? The specifications, scopes of work, and each parties expectations need to be extremely clear, or there will be problems for both the builder and the homeowner. Another advantage is that the builder is motivated to finish the project quickly, though the disadvantage is that he is motivated to finish it cheaply. Here are some questions to ask: Do you charge for an estimate, and/or for changes we make to that initial estimate? After signing a contract with you, can I change my mind on some selections? How will unforeseen circumstances affect the cost? How much will you be onsite, monitoring things? What happens if the quality of the drywall finishing (insert almost anything here) doesn’t meet my expectations? How much can I be involved in the process? How much do I have to be involved?
Posted on: Mon, 14 Apr 2014 16:00:00 +0000
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