A Guaranteed Price
When selling construction services, quoting a guaranteed price protects homeowners from the price increases that happen with a too low price.
When selling construction services, quoting a guaranteed price protects homeowners from the price increases that happen with a too low price.
Both fixed-price and cost-plus contracts carry risk. Is cost-plus the solution?
Why cost plus and time & material contracts should be avoided, for both contractors and building owners.
Time and Material contracts are full of risk, especially on larger jobs.
If you’re a business owner and take on a project out of the goodness of your heart, recognize you might not get paid and will be funding the project.
A contractor asked for my opinion on a request he recently received. It’s not a win-win proposition.
Ever heard the old saying that something “pushed your buttons”? It’s an emotional reaction, usually not positive. Well, Devon took a phone call last week that pushed my buttons.
Many building owners want a Cost-Plus contract because they believe they’ll have more control over the total cost of the project. It’s your job to educate them on the downside.
If you are going to deviate from a standard fixed price contract, look at your approach from your client’s point of view. Make sure they know what to expect and what you’ll do.
A very nice gentleman called me last Friday. He related a story about his home remodeling project. It was done a Cost Plus job, the "plus" was negotiated at 18%.
We have had two e-mails in the past week from homeowners asking about the “Industry Standard” for pricing, wondering if their contractor is overcharging them.
A coaching client was working with a potential customer who wanted a remodeling job on a cost-plus basis instead of a fixed fee contract.
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