“The term “Design-Build” means the design and construction of a project is contracted by the same company. In the Cost-Plus Model, the contractor is only in charge of building the project and the design is handled by a third party. Contrasting both, it becomes clear that communication is more streamlined in the Design-Build setup.
However, the biggest difference between the two is the cost risk and accountability when it comes to budget adherence. In a Cost-Plus System, it is the client that shoulders the above-mentioned items. This means that if construction takes longer than expected, or if sudden expenses arise during construction, the homeowner will have to cover the extra cost. In fact, statistics show that 80% of renovation-related court cases are tied to cost accountability.”