January, 1914 
HOUSE AND GARDEN 
53 
ular building contractor; it is most often 
followed in the country. In work of this 
kind the estimate given by the builders is 
of little or no value, for he is bound by 
no contract to maintain the price he sets 
for the work and the mere fact that he is 
willing and anxious to accept a contract 
of this nature shows either that he has 
little financial responsibility or that he is 
so doubtful of his own knowledge of the 
business that he is afraid to back up his 
estimate. Briefly, the plan consists in the 
builder and his men working for so much 
a day, all bills for labor and material 
being paid by the owner as they fall due. 
The opportunities for a dishonest builder 
to “soldier” on a job of this kind are un¬ 
limited, and one should if possible avoid 
having his work done under these con¬ 
ditions. If you are familiar with the 
building trades you may, of course, save 
money by this method. The risk is great, 
however, as you have no little hold upon 
the contractor. He may spend the esti¬ 
mated amount before the work is half com¬ 
pleted, and you have little if any chance 
of collecting damages from him. 
The cost plus percentage plan is good, 
although it figures more prominently in 
larger work. By this method the contrac¬ 
tor guarantees that the work will cost 
not over a certain sum, and agrees to ex¬ 
ecute it at actual cost plus a percentage 
(usually ten per cent or fifteen per cent) 
of the guaranteed price; the owner pays 
all bills for material and labor. It is usu¬ 
ally made a part of the agreement that 
should the work be executed for less than 
the guaranteed price the builder is to be 
awarded one-half of this economy—this 
gives him an extra bonus to work for and 
stimulates him to save as much as pos¬ 
sible. Should the work exceed the fixed 
cost of the estimate, the builder is forced 
to make good the loss. This form of 
contract is fair and economical, but three 
precautions should be observed — a bond 
should be required of the builder, or an 
agreement made with him that his commis¬ 
sions are to be retained by the owner until 
the completion of the work; great care 
must be exercised in forcing him to follow 
specifications so as not to affect his “econ- 
omy”at the expense of materials and work¬ 
manship, and the contract should call for 
completion by a definite date. 
A bond is necessary in a contract of this 
kind because it may be presumed that if 
the contractor were financially strong he 
would prefer the “straight” form of con¬ 
tract under which he would secure all of 
the profits instead of a percentage; should 
the guaranteed price be reached before 
the completion of the work, the bond pro¬ 
tects the owner from injury should the 
builder throw up the job and he be com¬ 
pelled to employ other parties to com¬ 
plete it — always an expensive matter. The 
retained commissions serve the same pur¬ 
pose, but in a lesser degree; on a small 
job they may amount to only a few hun¬ 
dred dollars and be insufficient to protect 
the owner. 
Steinway 
To Own a Steinway is 
to Possess the Best 
ts supreme musical qualities and mechani- 
cal perfection have extended the fame of the 
Steinway Piano throughout the world. In 
1 
every land, wherever the best iru music is 
appreciated, the Steinway is the favorite instru¬ 
ment. And the investment by the public of 
$120,000,000 in more than 150,000 Steiru- 
way Pianos is the strongest assurance you 
can have that to own a Stemway is to 
possess the best. 
Write for illustrated literature 
and name of Steinway dealer near¬ 
est you. Mention this magazine. 
STEINWAY «&-> SONS 
STEITSTWAY HALL 
107-109 E. 14. tk. St., New York. 
Subway Express Station at the Door 
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