You will probably save money in the end by getting a fixed-bid contract for your remodel or house addition. A fixed-bid contract states a total cost for your project that does not change from beginning to end. This contract is a commitment from the contractor to do the remodeling work for a set price. The alternative is a time and materials quote. The difference is that changes in labor costs, the need for additional time, and changes in material costs can cause the total cost of your project to increase during the time that passes between the day the contract is signed and the day the work is completed. A fixed-bid contract may reflect a higher price than the time and materials quote, but you will have a fixed and unchangeable cost for your project. While you won’t know if it saves you any money until the project is done, a fixed-bid contract could save you hundreds of dollars on your project.


If you found this tip helpful, you might also want to read this:
Introduction to Contracts
Contract Checklist
Save Money by having a Well-Written Service Contract