When it comes to building your dream home, the type of contract you choose can significantly impact your experience and satisfaction. A Cost Plus Contract offers a flexible and transparent approach that puts you, the customer, in control. Here, we’ll explore what a Cost Plus Contract is, its benefits over a Fixed Price Contract, and how it empowers you throughout the home-building process.

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What is a Cost Plus Contract?

A Cost Plus Contract is an agreement where the builder charges you the actual cost of materials and labor (the “cost”) plus a predetermined fee or percentage for their services (the “plus”). Unlike Fixed Price Contracts, where a single lump sum is agreed upon regardless of actual expenses, a Cost Plus Contract adjusts as the project progresses, reflecting real-time costs.

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Benefits of Cost Plus Contracts

1. Full Transparency
   With a Cost Plus Contract, you’ll have access to detailed records of every expense, from materials to subcontractor fees. This transparency ensures that you know exactly where your money is going.

2. Greater Flexibility
   Building a home is a dynamic process. A Cost Plus Contract allows adjustments to the scope or design without the need for complex renegotiations. This flexibility ensures your vision can evolve without being limited by a rigid budget.

3. Potential Cost Savings
   Fixed Price Contracts often include built-in contingencies to cover unexpected expenses, which you pay for whether they occur or not. With a Cost Plus Contract, you only pay for what is actually spent, potentially saving you money.

4. High-Quality Materials and Craftsmanship
   Since costs are billed directly, you’re not limited by pre-negotiated budgets. You can choose higher-quality materials or make design upgrades without feeling constrained.

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How It Puts You in Control

A Cost Plus Contract gives you a front-row seat in the home-building process:

• Choice in Materials: You’ll have the freedom to select the materials and finishes that match your vision and budget.
• Real-Time Budget Management: Regular updates and detailed expense reports allow you to monitor costs closely and make informed decisions as the project progresses.
• Collaborative Partnership: This contract type fosters a closer relationship with your builder, creating a true partnership in bringing your dream home to life.

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Why Choose Cost Plus Over Fixed Price?

While Fixed Price Contracts might seem straightforward, they often come with hidden limitations:

• Builders may include contingency fees to cover unforeseen costs, inflating the overall price.
• Any changes to the project typically require costly change orders.
• You have less insight into how the budget is allocated.

In contrast, a Cost Plus Contract ensures your investment is tailored to your priorities, giving you peace of mind and confidence every step of the way.

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Ready to Build Your Dream Home?

At Murphy Custom Homes, we believe that building a home should be a collaborative and transparent journey. With our Cost Plus Contracts, you’ll enjoy flexibility, control, and a clear understanding of every detail of your project. Contact us today to learn more and start building the home you’ve always envisioned!