Cost-Plus Contracts
By Michael StoneWhy cost plus and time & material contracts should be avoided, for both contractors and building owners.
There is No Industry Standard
By Michael StoneDon’t take any job where the client tells you how much you can charge for your work.
Time and Material Woes
By Michael StoneTime and Material contracts are full of risk, especially on larger jobs.
Is Cost-Plus the Solution to Underpriced Jobs?
By Michael StoneBoth fixed-price and cost-plus contracts carry risk. Is cost-plus the solution?
Cost-Plus – A Homeowner’s View
By Michael StoneA 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%.
Contracts to Avoid
By Michael StoneIf 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.
The Games People Play
By Michael StoneWhy would a developer ask for a cost plus quote to replace a fixed price quote? Because he wants the very same work done at a lower price.
Clients Wanting Cost-Plus
By Michael StoneMany 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.
Cost-Plus with a “Not to Exceed”
By Michael StoneA contractor asked for my opinion on a request he recently received. It’s not a win-win proposition.