Builder Charging Flat Fee Question
This is my second time building a new home. I've bought the lot in the hill country and my blueprints are complete with the exception of a few changes I've made. I have interviewed several builders and have bids from three. One is cost plus, one is fixed contract price (I've eliminated this builder for other reasons) and the most recent one is cost plus flat fee. Both bids are comparable line by line in terms of scope of work and allowances for the total build. Both builders have general liability insurance which is included in the cost plus all their references checked out. What I'm flabbergasted by is that the flat fee builder (let's say his fee is 90K) is almost double the cost plus builder (cost plus 15% - with 15% being what the builder will be paid - in this case 50K). Yes, the flat fee builder has 2 accredidations that the cost plus builder doesn't have - but that certainly isn't worth 40K to me. This flat fee arrangement appears to be a new way of doing business for builders - any ideas on how to negotiate with this type of arrangement? Thanks..