![]() ![]() They can then determine where they will appropriate their funds early in the construction process and receive a full accounting disc With the cost-plus basis, the homeowners know their actual costs on an ongoing basis. A cost-plus contract can be advantageous when building larger, custom homes with finish levels and other things changing during the process. With a costplus contract, you’ll pay the actual costs for all labor and material, plus the builder’s fee. A good builder will give you an accurate cost estimate, but it’s exactly that-an estimate-until the final accounting. ![]() ![]() Of course, neither you nor your builder will know the exact bottom line for the building costs until the final accounting is completed shortly after closing. This fee can be either a lump sum (flat fee) or a percentage of total costs. A cost-plus contract differs from a fixed-price contract in that it takes the actual cost of building the home and adds a fee for the builder’s overhead and management. ![]()
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