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Constructing housing is much more like conducting an orchestra than buying a car.
The builder/conductor is responsible for bringing every member of the team as well as all the products together in harmony.
A professional builder’s participation is to commence and complete the construction of the client’s project up to their expectations.
In order to do this, the client needs to know what they want installed in their project.
An experienced builder understands that a fixed-price contract with a client is fruitless, because 99.9% of the clients change their minds during the construction process and this disrupts the building schedule and therefore the fixed-price contract becomes void following the first change by the client.
And believe me, there are usually much more than a few changes. So the intention and the legality of fixed-price contracts in home building is unproductive for both the client and the builder.
A cost plus agreement allows clients to change their minds whenever they wish and the additional costs are paid for when the new materials arrive and the additional labor is paid for in the weekly payroll.
Neither the client or the builder is damaged by changes to a cost plus agreement, versus the fixed-price contract does not allow for changes.
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