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| Every reputable builder that I have met with here (fresno,Ca) deals with FIXED PRICE contracts. I have been searching for a Cost PLus Flat Fee builder but none seem to favor it at all. Should I keep trying to have them to do a Cost Plus Flat fee? Or settle for a Fixed Price with their allowances? |
Follow-Up Postings:
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- Posted by elizawhyza (My Page) on Wed, Jan 4, 12 at 20:32
| If you go fixed price, just make sure you get a lot of things specified as to allowances. We have a fixed price, and there is no transparency when we want to change things because not enough was specified for allowances. I can't comment on what is done in your area. I am in North Central Jersey. Fixed price is common here, and architects seem to favor it. |
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| Confirmed-- every builder we interviewed did fixed price (Kentucky.) |
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- Posted by Renovator8 (My Page) on Thu, Jan 5, 12 at 8:06
| Allowances are actually "Cost of the Work Plus a Fee" contracts within a "Fixed Price" contract so the more of them you have, the closer you are to a Cost Plus contract. To take full advantage of a competitively bid Fixed Price contract approach there should be no Allowances and unit prices provided where quantities might change. |
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| Well said, Renovator. We widdled our fixed contract down to just two allowances. |
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| Well I found a contractor that is willing to do a Cost plus fixed fee. He mainly does commercial work with some work on residential. While large custom home builders are quoting me 140+ per sqft. He is saying $100 a sqft will get me a beautiful home. Sounds too good to be true. But a cost plus fixed fee why would he lie? Should I run? |
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- Posted by Renovator8 (My Page) on Fri, Jan 6, 12 at 17:01
| Time are tough; why would he not lie? Get him to put some hair on his big bold statement. |
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| Well he said he will bid out my plans and I will see all the costs and calculate it for myself. His fee will be fixed. I am still hoping for some other builders that I can get bids from as well. |
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| We are also in California and had prices all over the map ranging from $150 sq/ft to $265 sq/ft. Our initial choice for a contractor was in the $150 range until it came down to sign contracts and his price went up to $190 sq/ft. We fortunately found another builder who was just finishing a home in the neighborhood who came in closer to $155 sq/ft without his fee (~10%). Right now we are right about at that amount - with completion expected next week. That is still about $75,000.00 more than we planned for when we bought the lot - but we are right on budget throughout the build, so that is a plus. A new neighbor has just started building and they were able to negotiate a 3% over cost contract with their GC - I don't know what their cost per sq. ft is, of if they are on a fixed price etc... I think if you can nail down all of you finishes, fixtures, faucets, lights, appliances, tile, flooring, paint windows, doors, countertops, cabinets - everything and still be at $100 sq/ft then you have a great price for California. |
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| Montel, where in california did you build? |
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| We are in Santa Cruz |
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