There are many decisions that must be made when you are approaching the idea of custom home construction. One of those decisions is whether you will use a cost-plus contract or a fixed-price contract. What is the difference between the two and how will it affect your custom home?
A cost-plus contract takes the actual cost of constructing the home and adds in the fee for the builder. With a cost-plus contract, you will be responsible for paying the actual costs for the materials and labor in addition to the fee for the builder as the project progresses. A fixed-price contract takes all costs into consideration before the start of the project. A fixed-price contract will provide you with a good scope of the work that is to be performed and ensure that you have a solid understanding of the costs involved. Your total costs will also stay within a predetermined allowance, eliminating surprises. This allows your new home builder to focus on the project and provides you with more peace of mind. Prior to embarking on the journey of building your custom home, be sure to discuss with your builder which option you prefer.
For more information about Custom Home Construction in Texas contact Ashby Construction at 512-876-9008.