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Financial Assessment Form Durham Key Options Durhamkeyoptions Co

Financial Assessment Form Durham Key Options Durhamkeyoptions Co

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welcome back I'm Adrien your expert on all things custom home building and luxury don't forget to like share and subscribe tell a friend how much fun we have on the Frasier homes channel so the question is what is the difference between a Cost Plus contract and a fixed cost contract so let's start with Cost Plus a Cost Plus contract is where you have a very trusting open relationship with your Builder and the Builder is going to charge you for the cost of the particular commodity the material or labor whatever that cost is plus a fixed fee or established rate so generally speaking there is this risk benefit on both sides so that means that you get the benefit of getting lower pricing if your Builder has good negotiating techniques if they are building at volume levels where they can get better discounts you get the benefit of those prices from your builder plus an established rate so the rate generally in construction is 18% so if the cost for lumber is $100,000

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