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3birdy

Need Advice on Builder Contract

3birdy
2 years ago

The builder we have been in communication with during our planning stages and the one we have almost decided on has said he no longer feels comfortable doing a "fixed price contract" given the volatile market (unless he factors in a huge margin for fluctuations)

He agreed to do a "cost plus" but bank is not comfortable with that.

His latest idea is to do a "Fixed Fee Contract" where his scope is mainly overseeing the project ...

All costs and expenses associated to be borne by us.... Which doesn't seem entirely unfair except that it absolves him from ALL risk and the cost of the project could end up being literally anything....

His fee is coming out to about 12-15% of what we estimate ( and hope !!) the cost will be... which I gather is about industry standard for cost plus in my area ( georgia)

Is there anything I should watch out for? Stipulations I can put in to mitigate the risk...

Any and all advice appreciated!!

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