Builder incentives/contract

14 years ago

Hi there,

DH and I have recently hired our builder and we're planning to break ground in a month or so. We chose our builder based on a competitive bid and are now getting ready to sign our contract.

Our house is a custom post and beam home so there are lots of allowances included (framing, foundation, exterior finish, etc are fixed price). Our builder doesn't earn anything extra if we go over our allowance. Did any of you include incentives for coming in under allowance? Of course, it could be US who decides to go over allowance, so I'm not sure how that would work...

I know some people include incentives for finishing ahead of schedule, but this isn't very important to us. Is there anything else that would be worthwhile to provide an incentive for?

Sort by:Oldest

Comments (3)

User
14 years ago
You want an incentive to use cheap materials? I'm all for no extra markup on overages, but incentives the other direction can backfire badly.
laurajane02
Original Author
14 years ago
Well, the way it is now, it's in our builder's best interest (from a financial perspective) to meet his allowance. Should we leave it that way?

How about a bonus for finishing ahead of schedule. Do people do that? Or would we risk quality being sacrificed for speed?
Related Professionals
Monroe Architects & Building Designers · Columbia Architects & Building Designers · Ogden Architects & Building Designers · Sebring Design-Build Firms · Baton Rouge Design-Build Firms · Greenville Design-Build Firms · Norfolk Design-Build Firms · Temecula Design-Build Firms · Saint George Design-Build Firms · Valdosta Home Builders · McAlester Home Builders · San Antonio Home Builders · Syracuse Home Builders · Milwaukee Home Builders · Pullman Home Builders
Dan44149
14 years ago
You will always risk quality at the mention of "speed." As a former GC, I would have been hesitant to build for you if you were interested in speed, as I prided myself and company on the quality of work we did. I would usually tell my customers that we give you a schedule as more of a guideline, and would take as much time as we needed to do the job RIGHT... and then leave it to them to decide whether they wanted our company to build for them. Any "average Joe" can build a house. It isn't that difficult. The difficulty comes into play with the high quality workmanship. That is why you pay more for better builders and quality. Never rush your Contractor; but don't let him walk over you either.