Builder contracts type 3: Time and Material (T&M). This is another common way to build custom homes. The builder is charging per hour for any time he has into the project, as well as any costs incurred, such as postage or mileage. Advantages are that detailed documents explaining specifications and scopes of work are not necessary; the builder does exactly what you would like him to, and you can easily do as much or as little as you would like to. This can be altered on an ongoing basis for weeks that you are busy, or if you need to reduce the builder’s fee, etc. The disadvantage is fairly obvious; that the builder could drag his feet and not work efficiently, thus costing you more than necessary. Another disadvantage is that the total builder fee is unknown until the project is complete (although he may agree to a cap). Questions to ask include: How much will you typically be on the jobsite per week? How much office work per week? What sorts of costs can I expect from you? Do you charge for an estimate, and how accurate is that estimate? How long do you expect the project to take?
Posted on: Wed, 16 Apr 2014 16:00:01 +0000
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