All contractors are incented to spend as little as possible and charge as much as possible. Why does the industry work that way? Isn't there a better model? Can i just pay you a fee? Wouldn't that be better if i just said, i just want to pay you ten thousand dollars for your software and services? Yes, there's a couple ways that custom houses are built, ah, and contracted with typical contractors. One is a cost plus model, where as a contractor, you get some percentage of over all build. And sometimes that works well. That can create misalignment of incentives around hov some ones charged....
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