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Cost plus building question

13 years ago

I posted on design dilemma but this ix probably better place to post-- does anyone know if you pay builder their commission on total sub / supplier invoice or just amount pretax?
This is cost plus agreement with builder. I'm trying to figure out a payment and wasn't sure which number to use to multiple- before or after tax amount. Thx

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Comments (3)

S. Thomas Kutch
13 years ago
Before Tax.........
PRO
Brickwood Builders, Inc.
13 years ago
It varies by agreement. We rarely do a cost plus, but if we do it is on the total (meaning after tax).
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S. Thomas Kutch
13 years ago
jdkerbs, the majority of contractors are going to say include the tax.......of course they are, it's free money in their pocket. My question to you is why are you willing to pay commission on something they didn't provide (materials or labor). The attitude of charging you commission on a government initiated tax is little more than theft. Heck for that fact, I'm sure the contractors would love to include the purchase price of your lot or land into the estimated cost of building your home..........more commission for them.

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