Building Construction Advantages And Disadvantages

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The main advantage is that the risk of price rise is going to be absorbed by the builder. Builder decides the price on the basic site plans. Items described and represented in the contract remains same throughout the contract; this fixed representation helps in deciding the price. The demerit is that the builder may revise his fees for the provided change or plan changes. Many builders are reluctant for this kind of fixed contracts. For accurate price estimations, detailed analysis of requirements and site plans needed. The clients mostly opt for fixed price contracts. We provide accurate bid for the project by estimating every detail deeply. Q16 what do you mean by a cost plus contract? What are its main advantages and disadvantages? A markup…show more content…
This has the benefit that the client knows the exact cost estimation of the house construction. By knowing the exact cost and loan amount, client can take benefit of dedication of taxes on this construction loan. For taking your own construction loan, it is necessary that you own the house property in your own name. This has the benefit of saving money that occurs later on while transferring the house property ownership. The disadvantage of taking self construction loan is that you need to qualify for it. This results in delay of the project execution, resulting in more interest payments. This kind of process results in out of pocket money invested by the owner. Taking of loans from the institutions where we are working provides the advantage of low interest loans and fast processing there is a relationship between us and the employer which helps in construction loans. Builder construction loan provides advantage for the builder if he completes the project before time. If there is a delay in construction than that money will be paid by the builder. You are saving because you have paid a fixed amount of money. Now if the delay occurs by the builder, the builder is responsible for his construction loan penalties and cost increments. For providing such benefits, builder often charge more money from you to suit this feature for both the parties. Be sure to clearly check the terms and condition for the rewards and risks for both the…show more content…
This document is build up of three important constituents. "Observable deficiencies", ""Performance guideline" and "corrective measure" are important part of this document. This document tries to solve issues that are hard to resolves. For example the beauty of any product in the eyes of different viewers, some items look beautiful to few and some to other few. When such kind of questions arises this document helps to resolve such problems. It is seen that house is made up of several components. Some of these components are handmade. Various levels of perfections are achieved for different items. The perfection in such components and installation caries depends on the situations of installation and available options. To satisfy the client needs it is advised that the previous work examples must be reviewed by the client before deciding a builder for their house construction. If you get satisfied by the previous work of builder, than you can start your contract with the builder. By seeing previous example work of builder, it helps to reduce

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