About this episode

This episode discusses the structure of Cost Plus contracts and how to prevent significant budget overruns.

Part two of the Cost Plus Contract series delivers the structure that prevents $100K+ overruns. If you caught Episode 56 last week, you know Cost Plus is when your contractor gets reimbursed for every cost plus profit margin on top—and it only works for three kinds of homeowners: the very experienced, the truly indifferent to total cost, or someone working with a great craftsman who's horrible at bookkeeping. Get your Cost -Plus Protection Checklist - For Free! If you went through the seven questions at the end of Episode 56 and your answer was walk away, you're done. Catch Episode 58 next week when we cover fixed price contracts. But if you decided Cost Plus is still the path—by choice, because that's what your contractor offers, because you're rebuilding after a fire, or because you're doing a complex remodel where Cost Plus is honestly the right call—this episode is for you. In the book, I talk about Cost Plus contracts like rappelling down a cliff. You can do it. People do it all the time. But you better secure the rope at the top before you start. This episode is all about securing the rope. The 5 Things to Settle Before Work Starts Settle these with your contractor before…

More episodes of Your Home Building Coach with Bill Reid

• Construction Contract Basics: What to Check Before You Sign · May 30, 2026 · 25 min
• Fixed Price Contracting: 4 Components That Decide Your Budget · May 23, 2026 · 39 min
• Cost Plus Contract Explained: 3 Types + California Law · May 9, 2026 · 41 min

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