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Projects are done on either a "Fixed Price Contract" or on a "Time and Materials Contract". Here is an explanation of the differences: FIXED PRICE CONTRACT A fixed price contract will state specifically what is to be done and at what price. Any changes to the scope of the work will be discussed and priced out separately. THE PROS: You know exactly what the job will cost. If the job takes more time than expected, you are protected by the fixed price. THE CONS: Changes require more discussion and can slow the progress. If the job takes less time than expected, you still have to pay the contract price. TIME & MATERIALS A Time and Materials contract will state the hourly labor rates. Normally, you are billed weekly for the labor and materials. THE PROS: You only pay for work done. Changes can easily be made. CONS: You do not have the certainty of final cost.
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