Cost Plus Contract, Time and Material Contract

By Michael Stone

Why cost plus and time & material contracts should be avoided, for both contractors and building owners.


Time and Material Woes

By Michael Stone

Time and Material contracts are full of risk, especially on larger jobs.


Cost Plus with a “Not to Exceed”

By Michael Stone

A contractor asked for my opinion on a request he recently received. It’s not a win-win proposition.


Clients Wanting Cost Plus

By Michael Stone

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.


The Games People Play

By Michael Stone

Why would a developer ask for a cost plus quote to replace a fixed price quote? Because he wants the very same work done at a lower price.


Contracts to Avoid

By Michael Stone

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.


There is No Industry Standard

By Michael Stone

Don’t take any job where the client tells you how much you can charge for your work.


Cost Plus – A Homeowner’s View

By Michael Stone

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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