Cost-Plus or Fixed Price?
We are getting bids for our new house and are getting both fixed price and cost-plus bids. Most of the builders in our area do the cost-plus thing, and so far I only found one contractor that we like who will only do fixed price. I have a good bit of references for all the contractors, so I can easily contact past clients, as well as current ones to see how the builder performed. At this point we are not sure what to do. The one guy who does fixed price is a really good contractor, but his price is about 75k more than the others. I'm not sure if that price is to cover his butt, or if he just has expensive subs. Also not sure if the other two are low-bidding. What are your thoughts?