This is about new construction, not repair. My family is building a new house. We agreed to "cost plus 12%". We got the first bill (basically for the foundation), and the contractor is adding in $800 per week that he is paying himself for supervision. In addition, he is counting that as a cost. On this bill, it makes it cost plus over
23%. His bookkeeper says that the additional is for "profit and overhead". We understood that he was to take the cost of labor and materials and add 12% and that was what we paid. To me, it is like he is getting paid twice - he is to take his profit out of the 12%. He is working mainly on two other jobs and is rarely there.Does this seem right? Should we be paying $800/week for a supervisor that is rarely there, count that as a "cost" and also pay him 12% of the cost?