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.