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Construction Contract Cost Plus or Fixed Fee New Hampshire Form

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Construction Contract Cost Plus or Fixed Fee New Hampshire Form

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Instructions and help about Construction Contract Cost Plus Or Fixed Fee New Hampshire

ever wondered what the difference is between a Cost Plus contract and a fixed price contract for your new dream home well I'm going to highlight the pros and cons of a fixed price contract and then we'll tackle the Cost Plus option in another video segment so a fixed price contract is calculated based on the total estimate for labor materials and equipment to build your home and then the contractor adds an additional contingency or buffer fee equal to 10 to 12% of that estimate so why would you do that well it brings budget certainty and project Simplicity you know the total cost UPF front you can mitigate risk where the contractor is on the hook for cost overruns and you ultimately simplify your cash flow and financial reporting where things like budget versus actual analysis are no longer relevant however there are also some cons the quality of work could be at risk contractors might cut Corners to save costs and improve their profits the contractor's Financia

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