Is it a negotiated Fixed Fee based on an estimate of cost or will it be determined as you proceed at 7% of the actual cost?

How complete are the drawings? Have you done this before? Are there any allowances or undefined design elements? Has the builder already contacted his favorite subs for estimates without competitive bidding? Will there be any markup for any of the Cost of the Work? Will you be on the site every day? Is there a design professional involved to review the costs and the progress of the work?

The cost of the job will be dictated in a large part by the prices the GC accepts from the subs so it is important to determine how that will happen. Who will select the sub contractors for bidding and who will choose the winning sub? Will you be involved?

Paying the subs directly means you will, in a sense, be acting as the GC with this guy acting as a Construction Manager even if he does some of the work. Being a GC normally means you take the construction risk; a CM normally does not. What portion of the work will he do with his own forces? Does he own his own truck? (sorry, irresistible old joke) What is the advantage of paying the subs directly other than to relieve him of liability for their performance?

A Cost of the Work contract is not simple; there are very many important variables to resolve before the contract is signed. Did he write the contract or is he using a form?

1. He looked my blueprints, and was actually already giving me his fixed fee before completed the estimate.

2. I have my blueprints drawn, by local architect, and he using it for my quote (must have my architect adds an walk-out basement before construction starts as he required)

3. Does not matter I go from $400 to $700K (He does that with all of his built, his fixed fee stays the same.

4. He will present all of the bids to me, and I may pick from there at wish.

5. No, I am not on site. He will be the one.
He builds fine homes. 2- 3 house per year. The subdivision he is building, they were happy and recommended him (he built the most custom homes there)

6. He will show me the receipts before paying. I have a choice either pay them directly or he pays with my money.
***As you indicated, I will letting him pay to his subs (much appreciated for your insight).

****However, I wonder, if the subs at fault, who pays for that materials? How do I trust him for this receipt?

7. He is optioned me to apply permit self built (that way I could fire him anytime), or he does under his name (I can't throw him out if something are going on).
Of course, for full responsibility of building my custom home, I want him to get permit using his company name.

8. He is still working on the estimate. I have not see his contract yet.