If you go fixed price, just make sure you get a lot of things specified as to allowances. We have a fixed price, and there is no transparency when we want to change things because not enough was specified for allowances. I can't comment on what is done in your area. I am in North Central Jersey. Fixed price is common here, and architects seem to favor it.

Confirmed-- every builder we interviewed did fixed price (Kentucky.)

Allowances are actually "Cost of the Work Plus a Fee" contracts within a "Fixed Price" contract so the more of them you have, the closer you are to a Cost Plus contract.

To take full advantage of a competitively bid Fixed Price contract approach there should be no Allowances and unit prices provided where quantities might change.

Well said, Renovator. We widdled our fixed contract down to just two allowances.

Well I found a contractor that is willing to do a Cost plus fixed fee. He mainly does commercial work with some work on residential. While large custom home builders are quoting me 140+ per sqft. He is saying $100 a sqft will get me a beautiful home. Sounds too good to be true. But a cost plus fixed fee why would he lie? Should I run?

Time are tough; why would he not lie? Get him to put some hair on his big bold statement.

Well he said he will bid out my plans and I will see all the costs and calculate it for myself. His fee will be fixed. I am still hoping for some other builders that I can get bids from as well.

We are also in California and had prices all over the map ranging from $150 sq/ft to $265 sq/ft.

Our initial choice for a contractor was in the $150 range until it came down to sign contracts and his price went up to $190 sq/ft.

We fortunately found another builder who was just finishing a home in the neighborhood who came in closer to $155 sq/ft without his fee (~10%). Right now we are right about at that amount - with completion expected next week. That is still about $75,000.00 more than we planned for when we bought the lot - but we are right on budget throughout the build, so that is a plus.

A new neighbor has just started building and they were able to negotiate a 3% over cost contract with their GC - I don't know what their cost per sq. ft is, of if they are on a fixed price etc...

I think if you can nail down all of you finishes, fixtures, faucets, lights, appliances, tile, flooring, paint windows, doors, countertops, cabinets - everything and still be at $100 sq/ft then you have a great price for California.

Montel, where in california did you build?

We are in Santa Cruz