Browse Forums Building A New House Re: Cost Plus Building contract fees 3Feb 15, 2011 8:53 pm Melina Hi all, We about to build and have found what we believe to be a good builder. He is proposing a 'cost plus contract' and his fee is 20% of the cost, is this high? As we have a couple of tradies in the family that are going to charge us next to nothing we thought there would be an advantage using this method seeing the builder said he would not charge 20% on them. Would love any comments, thoughts Thanks So the higher the cost, the more he makes... where's the incentive to reduce cost? I would be going for fixed cost with rise and fall. These days commercial builds often have a fixed cost plus a share of any cost saved - for obvious reasons. Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Cost Plus Building contract fees 4Feb 15, 2011 9:56 pm I was told only on the weekend to NEVER EVER do Cost Plus..... this is by HomeBase Expo seminar I attended. You will be forking out heaps of money....do you really want to pay for your builders coffee? Alternatively, you can sign a contract with pre-defined known amount you pay to the builder for management and warranties and then you just pay the invoices their provide… 2 5241 Is it just a report written to give to the bank initially and it is based on what and how your payments are made up for, or is it a full service where they go out and… 2 2986 0 1477 |