What are the main types of building contracts?

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There are three main types of home building contracts that you can choose from. When you work with K. J. Construction we will sit down with you and go over all three types in detail and tell you what the advantages and disadvantages are with each one.

Firm Bid

The first type of contract is called a firm bid. A firm bid is also called a stipulated price contract and it is an agreement to provide a specified product for a specified price. The product is represented by the plans and specifications used at the time of quotation. This type of contract will typically include allowances for items such as kitchens and light fixtures where the difference is refunded or billed outside of the contract.

Cost Plus

In a cost plus contract there is less restriction on changes because the owner and contractor agree to a budget and the contract value is determined by the cost of construction plus the markup to cover overhead and profit.

Construction Management

And finally K. J. Construction provides a construction management service were we oversee the management of your project from design through completion.

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