A fixed price still depends on defined scope
A stated total is useful only when the included work and documents are clear. Changes, allowances and exclusions can affect the eventual amount.
- Identify the drawings and specifications behind the price.
- Ask how allowance differences are reconciled.
- Check how unforeseen work and design changes are handled.
Cost-plus needs clear cost and fee rules
In a cost-plus arrangement, payment is based on defined project costs and an agreed fee. The written agreement should explain those terms rather than relying on a broad label.
- Define which costs are chargeable.
- Ask what supporting records accompany invoices.
- Clarify the fee basis and how forecasts are updated.
Have an adviser review the actual agreement
A guaranteed maximum, contingency or shared saving can mean different things in different agreements. Ask a qualified construction attorney to explain the proposed terms for your project.
- Check any cap and its exceptions.
- Define change approval and payment review.
- Understand what happens if work is delayed or disputed.
What to check next
- Identify the pricing arrangement.
- Define allowable costs and fees.
- Clarify change and allowance treatment.
- Obtain advice on the proposed agreement.
Choose your next step
Find contractors with relevant new-home experience, or talk with us about where your project stands.
Official resources
Check with the agency responsible for your property. City and County resources below apply within their respective jurisdictions.
Content updated .