The Prising Of Your Dream Home

Building a home is not an essay for anyone. Also, finding a good apartment was difficult for most. When you get the entire furnished apartment, you will feel your dream come true. How much does it cost to furnish an apartment? Let’s talk about it in this article.

Do you have any idea that builders use two types of pricing contracts? There is a cost-plus and fixed price. The first time when you want to build your apartment, you might be confused about which pricing contract will suit you. In this article, we will give you the details advantages and disadvantages of all price contracts, and it will help you make your best choice.

The Fixed Price Contract

In a fixed-cost contract, Your contractor will outline the total cost of building your house, including materials and labour, and overhead or profits – before offering you a price for the full price of the work.


  • It’s a fixed price that has been set before the project’s stat. Builders are responsible for overruns.


  • In the reverse scenario, the construction company absorbs the cost overruns, and the builder can retain any extra money as a profit if the project is under budget.
  • In this contract, you will get the final numbers, and you did not see the details of material cost and labour cost.
  • When other components of the construction project begin to eat the project’s profits, inexperienced builders may make a mistake in certain areas.

The Cost Plus Contract

It is a minor complex contract, but many builders and buyers prefer this. The builder’s expenses and profits are listed on the construction contract, and cost-plus agreements allow a house’s price to fluctuate based on building materials and labour costs.


  • In this contract, there is a plus point: the price details. The buyers can see the cost and profits, and they can easily understand that builders will charge them high or low.
  • If the project goes under budget, you will have to pay low.
  • In this contract, there was no threat to the builders’ profits. If the project gets over budget, builders will sacrifice their profit.


  • The longer the construction process is delayed, the higher the bill you will pay.
  • The cause of disputes could be the lack of a cost-plus agreement. What should you do if a subcontractor has performed substandard work?

These are the advantage and disadvantages of the contract. Now you have to dissipate it which one will you prefer.