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Podcast: The Real Estate Espresso Podcast
Episode: The Three Loopholes In Guaranteed Construction Contracts
Description: On today’s show we are comparing two different types of construction contracts, the cost plus contract and the fixed price contract. We will describe the major differences between the two and outline the major gaping hole that exists in both from which there is almost no protection.
As the names imply, a fixed price contract, sometimes called a guaranteed maximum price contract is supposed to guarantee the most that you would ever pay to get a project completed.
A cost plus contract adds up the cost of the work performed by the subcontractors and th...