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P.J., General Contractor
Category: Home Improvement
Satisfied Customers: 750
Experience:  Various construction experiences, both good and bad, allow me to help others solve their home improvement issues.
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Is it better to pay a contractor a lump sum or cost plus?

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Is it better to pay a contractor a lump sum or cost plus? We are building a 4000sq ft home pool, landscaping, 1200 sq ft pool home and shop. Is $150,000.00 to much for the entire job?

Legacy Built :

That price is certainly within reason for the work you've listed. Lump sum is typically best for you. It provides more peace of mind, due to you knowing in advance what you are paying, as long as your contract is very specific in what it is included in the price. If a contractor is held to a lump sum and has given a detailed breakdown of the items involved you are much less likely to run over budget. It essentially puts much more responsibility on the shoulders of the contractor. Both parties know what the expectation is up front. I always suggest allowing at least 10% extra in your budget even with the lump sum because there will be things you'll want added and there will be necessary changes along the way. I hope this helps. Please let me know if I can be of further assistance. Thanks for using JA!

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