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more slowly in the winter. All construction will slow down somewhat around
the non-Jewish holiday season, as municipal inspections are less available
and many workers take off then.
In order to keep your project running smoothly, be sure to keep in constant
touch with your contractor. Asking for regular updates and any changes in
status can help avoid unpleasant surprises down the road. Also, involve your
builder in your decisions. You may have your heart set on a particular type of
tile without realizing that it costs twice as much to install. By helping you understand
your budget and how much has been used, your contractor will be
able to help you make your purchasing decisions in a cost-conscious manner.
Cost-Plus vs. Set Price
A contractor’s services can be engaged in one of two ways — cost-plus or set
price. In the cost-plus model, the contractor will pass along all his expenses
to the customer, and then charge his own fee separately. For example, if the
job cost him $46,000 in materials and labor and his own fee is $7,000, the
customer pays $53,000.
Set price, exactly like it sounds, means that a price is negotiated at the start
of the job and does not change, regardless of any fluctuations or unexpected
changes in the cost of the work. The contractor does not detail his expenses to
the customer. If the price of materials rose during the course of the project, the
contractor might be left with only a small profit, but if prices dropped, he will
have a larger-than-anticipated profit.
A customer using an experienced contractor, who has learned to estimate accurately,
will usually get a better price by paying cost-plus. This is because
contractors need to build a cushion into their set prices to ensure that they are
left with a profit even if their expenses rise, whereas cost-plus doesn’t require
any cushion. However, customers on a very fixed budget might prefer set prices,
so they can plan their expenditures carefully. Either way, it is important to
clearly delineate at the start of the project exactly what is included in the cost,
and what would be beyond the project scope or subject to additional fees.
Will solar panels damage
my roof? Unlikely. If your
roof is under warranty,
though, the warranty will
be voided.
Electrical intelligence
This section has been prepared with the assistance of
Yisroel Berkowitz of BerkoWatts Electric.
When doing electrical work on a newlypurchased
home, consider the differences
82 | 2017 Lakewood Home Buyer’s Guide