Turnkey vs. Cost Plus: Which Contract Type Is Right for Your North Georgia Project?

A turnkey contract is exactly what it sounds like. The contractor provides a set price for the entire project, you sign the agreement, and when the job is complete, you turn the key, open the door, and the work is done. Every detail from materials to labor to finishes is included in that single price. For smaller jobs like bathroom remodels, kitchen updates, or basement finishes, this is almost always how the contract is structured.

Cost plus: pay actual costs plus a percentage or fee

A cost plus contract works on a completely different model. Rather than locking in a total price, the contractor charges the actual cost of materials, labor, and any rental equipment, plus a percentage on top, typically somewhere between 20 and 30 percent in today's market. Some builders structure it as cost plus a flat fee instead of a percentage. This kind of contract is most useful when there are a lot of variables in play, like an addition on an older home where unknown conditions might be discovered once walls open up, or a new build on an unusual piece of land where site conditions could shift the scope as the project progresses.

Trust matters more on a cost plus job

There's one critical thing every homeowner should understand before signing a cost plus contract. The builder is essentially being handed a blank checkbook. They're the one writing checks to subcontractors, ordering materials, and managing how every dollar is spent. That builder has a fiduciary responsibility to treat the homeowner's money like their own. Which means before signing a cost plus agreement, the homeowner needs to genuinely trust the person across the table. That trust is built through meetings, conversations, looking at past projects, and ideally talking to previous clients in the area. A cost plus contract is not the kind of agreement to sign with someone who just walked through the door for the first time.

So which one is right?

For most small to mid-sized renovations in North Georgia, turnkey pricing is the better fit. The scope is clear enough to define, the homeowner knows what they're paying, and there are no surprises. For larger or more complex projects with a lot of unknowns, like additions on older mountain homes or builds on tricky lots, cost plus can absolutely make sense, provided there's a strong relationship with the builder and some flexibility built into the budget.