Browse Forums Home Finance 1 Nov 17, 2010 12:18 pm Hi Guys I just had a builder come out to quote for our renovations and he mentioned that 'Cost plus contract' is a great way to go for renovations as we pay as we go so we know exactly how much we are spending. I heard this was a bad way to go - can anyone explain the reasoning behind this as I am not really sure. Thanks in advance Mel Re: Cost plus contract - bad idea? 3Nov 17, 2010 1:08 pm Once you start to pay him, he can charge whatever he wants, this will cost you, and if you want to break from the contract, it will cost you, so either way, it will probably cost you more than having a fixed price contract. It sounds a good idea at the start, the problem ****** with human greed, he is there to make money, the more, the better for him. Re: Cost plus contract - bad idea? 4Nov 18, 2010 2:20 am We have just completed our house on a cost plus contract with our builder. Work out very well as we could get quotes on any thing to check what price they charged. Would recommend it. Can not lose really. Sometime fixed price conytavts are well over inflated and you can keep an eye on running costs easy and what they are charging. Re: Cost plus contract - bad idea? 5Nov 18, 2010 6:51 am It's bad, very bad... no incentive to improve on costs, and you don't know what arrangements your builder has, like rebates from suppliers. The trades will be cost plus too... Unless your builder is a Saint (and there is only one in Australia), you will lose. 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 1000000% definitely add insulation. I have in my home and it makes a big difference minimising sound transfer. Insulation is pretty cheap and definitely worth it 2 6211 We are building a house that was planned to be clad in Hardie Linea, our builder has now requested to swap this for BGC Nuline Plus. They look fairly similar and he has… 0 635 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16571 |