Building collapse, page-65

From my experience those people do exist but are very much a minority. When we were building and prospective clients approached us the first thing we stipulated was there had to be mutual trust. If there wasn't it was of no use entering into any form of contract being fixed price or cost plus.
Once that commitment was established by both parties then we offered a fully accountable contract. By that i meant that we would carry out a quantity survey and cost the total job item for item with attached quotes plus provide the builders margin on those quotes. That way the client could see where their money was going to be spent thus giving them the opportunity to delete items or add further work or higher specification.
The client or the clients financier was then fully informed relative to the contract. As said before we would not take a deposit but would carry out and invoice for 21 days work plus the builders margin giving the client or their financier 7 days to inspect and pay for those works and materials. The customer could then marry in the quotes versus the invoices. That system enabled the customer not to be exposed and the builder being fully paid every month thus enabling him to be able to pay all of the suppliers and trades. No payment then no further work until resolved.
In the last 12 months prices for material and labour has risen so quickly i reckon all contracts should have a contingency of about 25% added to the total to protect the builder but only if they provide a fully accountable and costed contract.
Not 100% fool proof but in my experience a great way to conduct business and turn customers into your real friends.