Core terms

Cost-Plus vs. Fixed-Price

Core terms · definition

Two contract structures: fixed-price (lump sum, contractor bears overrun risk) versus cost-plus (owner pays actual costs plus a fee, owner bears overrun risk). Each shifts risk and pricing transparency differently.

Source: Investopedia — Cost-Plus Contract

  • Contract

    The legally binding agreement between owner and contractor that defines scope, price, schedule, and responsibilities. A remodel should ne…

  • Crawl Space

    A shallow accessible void below the floor (instead of a basement or slab) housing structure, plumbing, and ducts. Its condition affects a…

  • Contract Documents

    The full set of papers that together form the agreement — the signed contract, drawings, specifications, scope of work, allowances, and a…

  • Debris Container / Dumpster

    The roll-off container for construction waste. Placement, permits for street placement, and haul-away are real line items and logistics o…

  • Contingency Budget

    A reserve (typically 10–15% of project cost) set aside for hidden conditions and surprises uncovered once work begins. The line clients m…

  • Demolition

    The controlled removal of existing finishes and structure to prepare for new work. A clean, properly contained demo is where most hidden…

  • Concrete

    A mix of cement, aggregate, and water that cures into a hard structural material used for footings, slabs, and foundations. Curing time a…

  • Design-Build

    A delivery method where one entity handles both design and construction under a single contract, giving the owner one point of responsibi…

Where this term fits in a remodel

The pillar guides set terms like this one in context — what the work involves, what drives its cost, and where it sits in the sequence of a project. Pricing a specific house takes a defined scope and an on-site assessment.

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