Construction
Should I sign a construction contract with no fixed price?
A contractor offered to renovate my house on a “cost plus” basis instead of a fixed quote. Is that risky?
Asked anonymously · 1 month ago · Victoria, AU
·
699 views · 1 answers
1 lawyer answer
Cost-plus contracts can be fair when the scope is genuinely uncertain, but they shift more risk of overruns to you. If you go ahead, try to include:
- A clear definition of what counts as “cost” and the contractor’s margin.
- A good-faith estimate and, ideally, a maximum price.
- Regular itemised invoices with receipts.
- Written approval for changes above a set amount.
Many places also have consumer-protection rules for home-building contracts, such as mandatory written terms or cooling-off periods.
This is general information, not legal advice — speak to a licensed lawyer about your situation.
👍 19 helpful
Contact Fintan →
Are you a lawyer?
Answer this question to help the asker — and get found by clients with similar issues.
Sign in to answer