Cost Plus Contract Explained: 3 Types + California Law

Podcast: Your Home Building Coach with Bill Reid · William W. Reid

Opublikowano: 2026-05-09

A cost plus contract means your contractor gets reimbursed for every project cost plus a profit margin — but it comes in three flavors, and the structural differences determine who carries the financial risk. Download Your Free Cost-Plus Reality Check Tool Bill Reid explains cost plus percentage (most dangerous for homeowners), cost plus fixed fee (better protection), and cost plus with guaranteed maximum price (safest hybrid). You'll discover why California banned pure cost plus contracts for residential remodels under Business and Professions Code 7159.5, the industry-standard markup range (15-25%, or $75K-$125K on a $500K project), and th...