A builder has given us the options of a fixed price contract for our renovations or cost plus and we would like to get some advice on the cost plus option. Do people normally choose cost plus and how realistically can we monitor all the costs and hours worked? Is there anything else we need to take into consideration?

Yasmin. A cost plus model can be like a run away train. If you need to borrow money, the Lender will insist on a fixed price contract, unless you apply for an owner builder licence which has a number of other potential problems
Please call me directly if you need detailed advice.
Best Regards
Ken Olds
1300 ASK KEN

Hi Yasmin,

You would need to make sure you trust the builder 100%.
I have heard of situations whereby builders get kickbacks from trade people with a margin on top of invoices.
Additionally, a cost plus is an easy way of avoiding proper detailed costing with the certainty of what you will be getting.
It is a headache.

regards
Please feel free to call me
02 9897 9696