“Cost-Plus Fee” Contracts are appropriate for most “high-end” construction work. However, it’s the shift in risk they require that allows for the many problems you’ll have.
With Cost-Plus Fee Contracts, who is ultimately responsible for ALL of the construction costs, whatever they end up being? You are. Left unchecked, poor Project cost management by your Builder alone will result in your total Project costs being approximately 3-5% higher than they need to be. That is BEFORE the cost of any changes or upgrades.
Consider the cost ramifications to your Project, at the lesser 3%, against the cost of NCHCC managing your entire Project for you, from start to finish:
The numbers that you’re presented are inaccurate from the outset. The first Preliminary Budgets/Estimates you receive are incomplete and inconsistent. Numbers are “spun”. How can you know that the information you’re considering is valid? Then, Once Contracted…