What type of contract are you considering with your builder, Cost Plus or set price?

I have built and or renovated nine homes in the past 34 years. Finished the last one last June. Did a cost plus with my builder but when completed may have fared better with a contracted price. My cost plus consisted of wholesale cost plus 8% for the general contractor. I handled my own financing. I bid the project to three GC's. I also utilized spread sheets which is also a wise move on your husband's behalf. You mentioned you have been extremely cost conscious in pricing materials etc. If you go the cost plus route be careful with areas such as foundation costs etc. My last project was completed in the NC Mts. and I failed to properly estimate the cost of my foundation and related items to the tune of $75K. Final product looks great though and know if I sold this year, I would make a profit. I have built four homes and one historical restoration cost plus and the others were contracted price. If this is your first home, I would recommend contracted price. Just be aware that the contracted price is set and if you should go over budget in any area, most contractors will charge you for the changes with the actual increased cost plus a set percentage penalty for the error. Good Luck!

Thanks so much for the response! This shows how little I know, definitely a lot of reading to do. If I were tho go with contracted price and we came out under, how do we determine where the excess goes? Not that I think we'd come out under... Could we potentially request just paying overages out of pocket?