A Guaranteed Price
When selling construction services, quoting a guaranteed price protects homeowners from the price increases that happen with a too low price.
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Is Cost-Plus the Solution to Underpriced Jobs?
Both fixed-price and cost-plus contracts carry risk. Is cost-plus the solution?
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Cost-Plus Contracts
Why cost plus and time & material contracts should be avoided, for both contractors and building owners.
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Time and Material Woes
Time and Material contracts are full of risk, especially on larger jobs.
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Business or Charity?
If you’re a business owner and take on a project out of the goodness of your heart, recognize you might not get paid and will be funding the project.
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Cost-Plus with a “Not to Exceed”
A contractor asked for my opinion on a request he recently received. It’s not a win-win proposition.
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Business Owner, or Hired Labor?
A contractor called to ask if it was appropriate to markup worker’s compensation. He’s building jobs without a contract, providing a rough verbal estimate and then billing every two weeks on cost plus a “commission” of 10 or 20 percent.
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Clients Wanting Cost-Plus
Many building owners want a Cost-Plus contract because they believe they’ll have more control over the total cost of the project. It’s your job to educate them on the downside.
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Contracts to Avoid
If you are going to deviate from a standard fixed price contract, look at your approach from your client’s point of view. Make sure they know what to expect and what you’ll do.
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Cost-Plus – A Homeowner’s View
A very nice gentleman called me last Friday. He related a story about his home remodeling project. It was done a Cost Plus job, the "plus" was negotiated at 18%.
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Is My Contractor Overcharging Me?
We have had two e-mails in the past week from homeowners asking about the “Industry Standard” for pricing, wondering if their contractor is overcharging them.
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Cost-Plus, Cost+, Time and Materials, T & M
A coaching client was working with a potential customer who wanted a remodeling job on a cost-plus basis instead of a fixed fee contract.