That's how building works. Builders get you a good price using repetitive product choices and methods and that's how prices are kept under control. If you want a custom build, then you don't want to deal with this builder. But you will pay more for customization. Sometimes a lot more. If you don't want to pay that extra, then buy an existing house and do a remodel. Or, think of buying the builders home as buying an existing home where you remodel what you don't like post close.

Much appreciate for your response, Hollyspring!

This is for new custom home. I have my blueprints, he charges cost + fixed profit. But he wants to use his subs only

I agree with hollysprings on this-
The builder I am using has talented subs that are sometimes difficult to work with, but they have turned out mostly good work. The process is fraught with frustration truthfully even under the best of circumstances, so don't rush to sign on with a gc who is making you feel pressured already. Explore your options.

Thanks musical.

It is my lot and blueprints. This builder does quality works but seemed he has few good subs and suppliers against him because the way he talks. Therefore, he has of no choice to go with more expensive suppliers and subs.
I think he thinks he is too good and look people down.

Seeing both sides of the argument, I think it's VERY important that you settle a lot of these issues NOW before you've signed essentially a "blank" contract...there's nothing keeping them from huge upcharges on the stove, there's nothing keeping him to actual make good on his "promises" he's giving you to push the contract. The reality is, if it feels pressured now, it's not going to get any better. Get your ducks in a row, make a clear contract with the fellow, and decide if you're willing to go with the added cost of being forced to use only his subs. Is it possible since this is 100% a custom build, that you simply have him complete the house without flooring and tiling, and then you act as your own GC to finish those aspects with subs of your choice?? That would free him from the liability and hassle of dealing with subs he doesn't know, and give you the freedom to chose who you like. THAT is the advantage of a custom home...you own it every step of the way and decide who's in or out. Have a contract drawn with this fellow for the stuff you trust him on, and deal with the rest yourself.

Something is strange here. You seem concerned about the availability of materials but why would a different sub not have the same difficulty in obtaining these materials if they are not in stock locally? Floor installers usually get their flooring materials from the same suppliers and so do tile subs. Are these guys professional installers or from storefront retail outlets?

If this is a "cost of the work" contract then you must pay for a material that must be ordered regardless of who installs it.

If you want the GC to bid the sub contracts with 3 subs, then tell him that. Often the incentive for these "sweetheart" deals is that the subs give the GC kick-backs which should be specifically forbidden in a Cost of the Work contract. the GC should only charge you what he pays out minus any rebates or discounts.

ditto on having the wood floor/tile installed after the build. This doesn't have to be done to get the CO. Just make sure they 'deduct' all of these costs from the quote.

I hope I am not too late in helping you with some advice.

We are in the process of building a custom home and our GC (excellent reputation and good framer) promised us that we could pick the subs if we didn't like who he chose at that time. When it came to that time, he really pressured us to use his subs and when we refused (didn't like the quality of their work), he told us to go ahead but he would not warranty any work done by a sub that he didn't want. This scared us so we did some of what he said, but we were unhappy with the work and in some cases it was too late to fix.

We ended up parting ways with the GC and are our own GC now to finish things up. It is important to remember, this is a CUSTOM home. For some reason GC's seem to forget that and pressure you to do what they want, not what you want. You will be living in this home, not the GC. I advise you to work this out with the GC ahead of time and have things in writing or you have no recourse. Or hire him as the foundation/framer guy and be your own GC.

In fairness to the GC, he has a set time he wants to get everything done to make the most money so he can move on to the next project. This works well for some people, not so well for others (like us). If you want to be very hands on and a part of every aspect of the build (like us), you and your GC may have problems if you don't iron them all out now. If you want to leave many decisions up to him and be less involved, let him hire the subs he is used to dealing with.

Have you looked at his other homes and the work of the subs he wants to use? We had a cost + contract also, but there was no fixed fee cap. Imagine our stress with "oops, I miscalculated how much that would cost" incidents. Our contract had a clause that if he went over the estimate by a certain % we had an out. Make sure you have an out or you can get into trouble fast.

Also, if he gave you an estimate, it probably included estimates provided by the subs he wants. If you change, your costs will most likely change. His subs were probably chosen by him to meet the quality/price point he estimated for you. In our case, even though we said we wanted solid wood cabinets, granite countertops and casement windows, as we entered those phases of the build, we found out he estimated for the cheapest double hung windows, formica countertops and press board cabinets. When we complained, he said it was our fault that we chose higher priced items. We did not have all the materials detailed in the contract and estimate, so you may want to look into this also.

I hope I have helped you learn from our mistakes and experience. Building a home can be fun, but it is stressful - especially when you don't have a fixed cost. We will be glad when it's over and although we won't be bankrupt, we won't have money to decorate and furnish for quite a while do to cost overruns. This was our first home we ever had built and is also our retirement home, so we are additionally stressed that we can't just sell in a few years and do it again.

All of these issues should be settled in the original contract not negotiated in the field. A contract is signed by both parties so the homeowner is equally responsible for not resolving these important issues before they become a problem. Don't expect a GC to protect you from these kinds of pitfalls; you are spending too much money to not hire someone to protect your interests.

For a fixed price contract the subs will have bid their work to the GC and the GC will have included those prices in the contract price. Changing the subs later would require rebidding the subs and changing the fixed price. And the GC should propose 2 or 3 new subs and you would approve the winning bidder and accept the change in the contract price by approving a Change Order.

With a Cost of the Work contract a similar procedure would be used, in fact that procedure is often included in the original contract.

When I had my root canal, my dentist gave me a temporary cap while he sent the model of my tooth to a subcontractor to be made.

I couldn't imagine telling my dentist that I had a brother-in-law that dabbled in tooth building and that I would like to compare what his sub is charging him vs. what my brother-in-law would.

Worse yet, suppose he agreed? Heck, he may be looking for a new tooth building sub anyway and what better way to give a guy a trial than by a customer that agreed to be the guinea pig? If the tooth fits badly or takes months to arrive it's not the dentist's fault. Looks like a win-win for him. I'd just hope he didn't expect me to pay for the mistakes/delays/additional work my brother-in-law caused him.

I mean professional builder, professional dentist, what's the difference?

Much appreciate to All !

Answer to all:

1- I checked GC's works. He is indeed a quality GC as well as his subs.

2- His hardwood floor guy who owns a local shop and bought volume of hardwoods for a discount before price increased . But that sub was never mentioned it is good deal when giving the previous quote, until I want 2 1'4" W.

3- GC's fee is fixed. Does not matter I have change or stay with original plans. His fee will be the same.

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Here is a link that might be useful: Grabaprice

I don't understand this conversation. Good luck with the project.