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For example, a flooring contractor can’t be expected to repair ground joists if it is discovered that they are in poor condition. The contractor will both do this as a separate project via a change order, or you have the choice to hire another individual to do the work. This contingency represents a traditional, even necessary, part of doing enterprise as a contractor.
Because the contractor’s fee is factored from the project value, he stands to make more cash if prices are greater. As the home-owner, you might favor billing that clearly identifies labor time and materials, since there may be nothing protected by a contingency charge. You pays just for the work accomplished and the materials used—plus a set share of markup for the contractor.
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Estimate proposals are characteristic of larger-scale tasks such additions or house building. In reality, as a result of complexity of those tasks, it might be nearly inconceivable to problem a set-price proposal for such work. There is a restrict to unexpected prices that can be coated by the contingency.
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