A relative is getting quotes to construct a minor dwelling in Mangere. The best fixed price quote is over budget and they are considering letting the contract on a cost plus labour basis. I would appreciate advice on the pros and cons of these options and any other relevant advice. Thank you.
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Fixed Price or Cost Plus Labour Bulding Contract?
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Fixed Price or Cost Plus Labour Bulding Contract?
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Originally posted by Bryanw View PostA relative is getting quotes to construct a minor dwelling in Mangere. The best fixed price quote is over budget and they are considering letting the contract on a cost plus labour basis. I would appreciate advice on the pros and cons of these options and any other relevant advice. Thank you.
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Originally posted by elguapo View PostThe most important thing to remember is that with a fixed price contract the builder is taking most of the risk, on cost plus the client is. The more experienced your relative is with construction, the more likely cost plus might be a worthwhile option. If they are not, then fixed price will most likely be the cheapest way to complete the job.
Perhaps get some more quotes and tell them about your budget (less a contingency). Have your lawyer review the contract for your protection.Profiting from Property, not People
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