It appears to be a turn-key (not owned by you until finished) Fixed Price contract with Allowances for some items. Allowances are like small Cost of the Work contracts within a Fixed Price contract. These Allowances should be well defined in the contract. I've never known anyone to be responsible for permit fees other than the owner of the project but if the builder owns the project until the end I guess the permit fees would be part of the Fixed Price unless specifically excluded or listed as an Allowance.

Have you talked to them and asked if they can change their bid to lower the price? They might be able to make some substitutions or have you do some of the work to lower the price. However, maybe it's just not possible to build the house you want for the price you're expecting. Don't go cheap because you'll regret it later. Some builders won't do cost plus so it may not even be an option with these builders. I prefer fixed price. No surprises.

There will always be something you don't anticipate, that's the nature of the beast. Have you had a chance to go to a current job your contractor is working on and see how they do business? This will give you a sense of the crew, work ethic and how respectful they are of a client's property. I was able to go to 2 jobs my contractor was working on and it helped me make my decision. You will be able to see things that you won't want to happen at your job site and then you can put that into the contract. Are you gong to be living on site? How extensive is the work being done? Do you have children? Will you or someone else be on the site during the day or just the contractor? We are living on site (which is no picnic - don't even get me started about the dust...). The crew built me a temporary wall between the work area and where we are living. It has been great - In addition to insulating the wall they also stapled plastic sheeting to keep out dust and debris. You would never know there is construction on the other side of the wall if you didn't hear all the activity. The only problem with dust and mess is in the basement below the construction area (which is where my temporary kitchen is located). They have taken up the sub-floor and gravity being gravity, things come down from above. Now that they are done with the electrical and pipes in the area below the construction we have stapled plastic sheeting to the joists and this has greatly reduced the amount of debris falling into the basement. So ask about what they are planning to do to reduce the impact on your family and the construction mess going into the non-construction areas of your home. Do you have a personal umbrella policy to protect you if someone gets hurt and you are sued? I had 3 bids for my project. I researched and made sure that each company was properly licensed and registered in my state and local jurisdiction to do the work I was going to hire them to do. I also checked to see if the companies had any complaints with the BBB, the state or the county. I also checked if the company and/or the principals were or had ever been sued, declared bankruptcy, had any criminal charges, DWI's, not been paying alimony or child support. Regarding some of the items on your list: The guys doing my renovation use a radio and I like it (we seem to have the same taste in music... there is nothing more entertaining than hearing them sing while they work... I think it helps the productivity of the crew, so even if they listened to something I didn't care for, I wouldn't have a problem). If having a radio playing is going to bother you there is no way you are going to survive a renovation/remodel. My contractor included a porta-john in the contract. My crew has been here every day - except for one day when we had bad weather and the schools were closed (the foreman called and apologized that they would not be able to make it b/c the roads were impassable). We have a "dump trailer" parked in our driveway that they fill and then take to the dump and return. This reduces piles of debris laying around. They clean up as much as they can. Please remember that renovation/construction is not a clean process. Don't expect them to neatly stack their supplies and store lumber in ascending or descending order of size.... If my crew decided not to wear shirts, I could sell tickets and recoup what I am paying on this renovation in no time...... ;). Below are things I would add to the list (I haven't looked at the other threads, so if I am covering old ground.....): Who will be in charge of the crew - get their cell phone number. There could be an emergency in the evening or the weekend and you will want to be able to get hold of someone. How many job sites will this person be running at the time of your renovation? How do they expect to get paid? I pay my contractor in 1/12's depending on targets met outlined in the contract (i.e. framing completed, drywall up, etc.). Ask them (in order to get a better estimate of the actual cost of the job) if they need to poke a few holes in walls, look under floors, go in the attic, look at old plans of the house. I did not think of doing this and though it would have helped with some of the unexpected items, most of them were not known until we opened ceilings, floors and walls. Are they insured/bonded? How much coverage do they carry? Will you have the same crew every day or will new guys be cycling in and out (I have the same crew every day with additional as needed)? Does your contractor conduct background checks and drug testing on his crew? What about the subs? Will subs be allowed on the property WITHOUT supervision by the contractor or his crew? How will change orders/change of scope be handled? When there are questions/issues and more than one solution have them check with you before going forward (what they think would work best might not work for you).. You don't want them to say, "well that's what I thought you would want...." How will they get in and out if you are not home (I have a lock box - provided by the contractor - on one of the doors with a key in it - the lock was provided by the contractor (for a new door) and he will replace the lock when he is done)? How do they feel about you providing your own fixtures, etc. (my contractor has no problem with me doing this as long as I get things here when he needs them and I make sure to order what he needs (I check with him before ordering))? I am sure I have missed some things. Good luck!

>Fortunately, the best, most reputable builder in our area is a design-build firm. >After a $3k deposit (applicable toward the contract) and about 6 weeks, we had a >design that we absolutely loved, and a contract just a little bit over our ideal budget >(but that we could get to if we eliminated the 14x14 screened-in deck or dropped >back to a 2 car garage from the current 3.5 car garage.) This is the same thing I have been saying. Having worked for a builder, if builder design satisfies you or require some "minor changes"* - go with it. The cost is nailed down to last stud. I do not believe that IF you are trying to build house on the budget, and this budget 400k (may be $500k) I would be involving architect . Now if you are willing to pay $200/per sq ft go ahead. @lapsangtea As far as original issue: " 630 has become 855" - I can easily see this. Large foundation, upgraded finishes + complicated exterior will do this.... Talk to a builder: ask point blank when can you to put it back in the budget. Most of the time you can build shell for $100k, it is all in finishes. (So reduce finishes for bidding). Get rid of high end faucets - replace with Moens to keep plumbing under control. Always bid 200A service and once you got the bid, ask about "upgrade to 400A". Avoid high-end HVAC (never cost effective), drop hrv/erv and ask about it as an option later IFF you need it. High-end windows add up pretty penny, with little ROI. If you want budget construction - act like it. Specify all high end finishes - builder will get concerned and pad pad pad - when your budget goes out of the window.