Browse Forums Building A New House 1 Nov 20, 2013 1:47 pm Hello. I have a old house in melbouren, and i decide to build a new dream home on the site. my concept is Construction cost around $700,000~ $900,000 and 55~60SQ, construction period 10 month. My builder who offer me 2 options about the contract. Fixed contract, he told me that becasue of the holding cost and other staffs, he will charge me 20% for the margin. However, if i choose cost plus constract, he will only charge me around 10% for the margin. What is the disadvantage for cost plus contract? who can explian that for me? in deed, if there is only 1% different, i will choose fixed contract for no reason. Should i choose Cost plus if my builder is an honest person? Thank you everyone. Re: What type of Contract should i choose? Melbourne 2Nov 20, 2013 3:54 pm The builder can offer you a smaller margin because there is no risk to him. You carry all the financial risk for cost overruns. Also many clients tend to keep adding things to cost plus contracts (because its "easy") during the construction and can then find themselves shocked by the final price. The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. I've decided, after a period of confusion (my building broker told me it's probably not worth it to use a lawyer, but others have said it is a must) that I definitely will… 7 27906 Hi All, I just wanted to close this topic out with an update. So we ended up agreeing to a number with the insurance company, and after an extensive amount of hand… 8 23348 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16455 |