A bid job consists of the anticipated (worse case scenario) labor and materials to do the job plus the contractor’s profit and overhead added in to the total.
A cost plus job consists of the actual labor and materials plus the contractor’s profit and overhead.
Cost Plus Job
With today’s economy every one is trying to save money and that includes money on home remodeling. Cost plus can be a viable way to achieve this. However, you must trust your contractor implicitly. By doing a job on a bid basis the thing you must consider is that the contractor has to bid worse case scenario for your home remodeling project.