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‘Cost Plus Pricing' Gives Homeowners More Options for New and Remodeled Homes
In a typical new home or remodeling contract, the homeowner is given a set price from the general contractor for the entire project. If the homeowner agrees, from that point on it's up to the contractor to hire subcontractors, ensure the work is completed to their client's satisfaction and pay each subcontractor for all the work performed.
Although this is standard operating industry procedure, ‘Cost Plus Pricing' is an innovative and unique contract that is a great alternative for the homeowner.
Keith Worrel, owner of Advantage Construction & Consulting, says that ‘Cost Plus Pricing' really gives homeowners more of an opportunity to be involved, informed, flexible and much more protected throughout the building or remodeling process.  "This is a whole different avenue in building or remodeling," Worrel explains, "where the homeowner has much more control over every specific aspect of the job."
A custom homebuilder in primarily Johnson and Miami Counties for the past seven years--now specializing as a construction real estate agent and consulting on remodeling jobs for kitchens, basement finishing, siding and windows--Worrel explains that the typical process is for a general contractor to meet with the homeowner, find out what they want and give them a total cost, sans a specific cost ... more

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