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Cost-plus contract
A cost-plus contract means you pay actual costs plus a fee or percentage for the builder.
Why it matters
Cost-plus can be fair when scope is uncertain, but it requires strong tracking and trust.
Where people get this wrong
Cost-plus is not a blank check. You still need a budget and reporting. Receipts and clear categories matter for cost-plus.
Real-world example
A remodel opens walls and reveals surprises. Cost-plus can handle that reality, but only if you get clear weekly updates and clean documentation.
Where this hits your build
This comes up early, before construction starts. It affects your contract, your budget, or both. Misunderstanding it can cost you money or leverage.
Most people do not just struggle with terms. They struggle with the decisions tied to them.
See how HouseChalk helps with the decisions behind terms like this