Many people are not aware of whether they should go for fixed price builders or better stick with negotiable price builders. This article will clear all sorts of confusion which is running across the head so that one can take an intelligible decision. Investing in the builder is a vital aspect that must be spent time on. One should drill into the research process as the determination process about the builder will shape out the future events of your place. Let’s dig into some key differences of cost-plus builders and fixed prices building contract builders
Advantages of a Fixed price building contract
If you will be going for a fixed price building contract then you will have an edge to settle the clauses regarding the payment in advance. You will know the exact budget thus will be able to make your way up through it. One benefit of choosing a fixed price building contract is knowing the cost even before starting the project.
Limitations of a Fixed price building contract
You might not be aware but if you will go for a fixed price building contract then this will offer limited changes. The flexibility of the building project will get affected and one will not be easy to change things during the implementation. You will be presented with a detailed plan at the start as a result of a confined budget.
One needs to realize that the seller has a chance in a fixed price building contract to charge a high upfront cost. Bear in mind that the buyer can not later put forth any contest as a result of rocked expectations. There are certainly other reasons for which you will not appreciate the option of a fixed price building contract. These contracts are not much flexible, as mentioned above, to the future request. The point here is that there can a probability of any new requirement surfacing during the implementation process. In such cases, people may want to go for price negotiation but this option is extremely difficult to achieve. The whole schedule of the project gets on stake if midway changes sprouts out of nowhere.
Apart from flexibility, other things are on stake. If you will be going for a fixed price building contract this can limit your project in several ways. Such projects respect the timelines strictly thus in the race of completing the project there is a high probability of missing out on a creative process. In this scenario, the quality of the project, will no doubt suffer. If you don’t want the work to get affected at the expense of its price then the sensible approach is to go for a negotiable price builders option, where one can avail more leverages.
Advantages of Negotiable price builder
If we drill down into the negotiable price builder option then people go for this contract as a result of its freedom. This option is not restrictive and opens up the opportunities for changes later. Such models are opted by many as they open doors for future amendments. This model, unlike the fixed price building contract, offers flexibility.