On a fixed price contract, how are you structuring your mechanism for change orders that cover material price swings?
Looks to me like you need a large table, showing for each item:
Bid/estimate unit price, including sales tax rate
Bid/estimate quantity basis
The extension of these in gross dollars
Here are two examples:
5/8 OSB, $21.99/sht, 231 sheets, $5,448.00 incl. 7.25% sales tax
Cabinetry, custom, $57,322, one lot, lot price delivered with tax and freight
Replies
Jerrald posted some links to NAHB stuff on this topic, probably still visible on the JLC board. IIRC their approach is to have a written quote for specific materials, and then a matching invoice for the same materials. If the invoice is higher than the quote you have escalation. If you do this I would certainly include a clause in the contract stating that the choice of material suppliers is yours... so the client can't force you to buy the framing package at the big orange box. Here's a snippet I downloaded from somewhere...
Yes, that is simpler. Thanks. I had seen that before, and forgotten.