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Should You Use a Cost Plus Construction Contract?
Building is Not a Game of Poker - Why you Should Share Your REAL Budget
The general rule of thumb when building a new home is that you should obtain bids from at least three quality homebuilders. That is generally good advice, but there are major obstacles to making those bids realistic and useful. They include the need for detailed plans and job specifications, the need to find comparable bidders and the need to structure the bid in a way that facilitates easy comparisons. It can be difficult to get all three just right.
If you’re talking to builders about a new custom home you will find that there are many different approaches to the use of allowances in construction contracts. An allowance is a specific dollar amount available to be spent on one construction item. Allowances are commonly used for things like cabinetry and flooring as a way to designate part of the estimated cost to cover items that have not yet been selected. Think of it as a mini-budget for what you can spend on each item in order to stay within your overall project budget.
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Turnstone Custom Homes
37395 Oyster House Road
Rehoboth Beach, DE 19971
(302) 227-TURN
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