Unlock Flexibility and Transparency: Why a Cost-Plus Contract Might Be Your Best Bet for Building an ADU
Building an Accessory Dwelling Unit (ADU) can be an exciting but also complex undertaking. From navigating local regulations to choosing the right finishes, there are numerous factors to consider. When it comes to your construction contract, the choice you make can significantly impact your experience and the final outcome. While fixed-price contracts are common, have you considered the advantages of a cost-plus-fee agreement? For homeowners looking for transparency, flexibility, and the potential for a more collaborative building process, it might just be the ideal solution, especially for the unique considerations of ADU construction. What Exactly is a Cost-Plus-Fee Contract? Unlike a fixed-price contract where you agree to a set total cost before the project begins, a cost-plus-fee contract operates on a different principle. You, the homeowner, reimburse the contractor for all their legitimate and documented expenses – think labor, materials, subcontractors, and even equipment. On t...