Consumer Building Guide NSW- Cost Plus Contract
A cost-plus contract is a contract under which the builder is reimbursed for the direct and indirect cost of the work plus a fee (fixed or percentage of the cost of the work) for services. Cost-plus contracts can be cost-effective as the homeowner only pays for the actual cost of materials and labour.
A cost-plus contract should include:
• an estimated budget
• a timetable for reporting actual labour and material costs to the homeowner
(it is recommended that reports are provided at least once a month to avoid confusion and possible dispute)
• a way of tracking actual labour and material costs against the project budget.
Ask the builder to produce receipts for all materials that have been purchased and any other costs such as the hire of equipment. Reference- NSW Fair Trading viewed 15/2/12, image source google.
Como Building P/L, Michael Como provides in SYDNEY, an NSW Building Regulations Consultancy service that comprises, Interpretation of NSW legislation relevant to the construction of Class 1 and 10; Issuing: Complying Development Certificates (CDC), Construction Certificates (CC) [after a local council has approved a development], Occupation certificates (OC), Compliance Certificates, NCC Building Code Australia Reports. Engagement for the certification work is on a contract basis.
Also, a pre-purchase property inspection or building inspection by Michael Como may empower you with knowledge about the condition of a property currently or before you buy it and help you avoid future problems and unexpected costs. However, this service can only be conducted if the insurer is on-side, and currently, they are not and as a result, we do not conduct it.
Michael Como is Your Custom Home Builder in Sydney with over 46 years of construction experience, a Master Craftsman sharing innovative Restoration/renovation Ideas. Licensed since 1988. At this stage, I will only carry out building work at a contracted agreed hourly rate.
Let your imagination soar as you enjoy Building Green Homes or Straw houses or Hemp Homes or Heritage Style Restoration or Bathroom renovations or UHR or Digital twin or Sealing…. Etc.
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