BERKELEY CONSTRUCTION LLC. 27 Sisc:4?ii Rc 2 -! Lesley and Ike Goff Dear Lesley and Ike, I have enclosed the estimate for your new home. Things are starting to get exciting here! The numbers are coming in at about where I thought they would. The number can vary and you will probably add things not included in this estimate. I have however added over 72,000 in miscellaneous costs for underestimates and things you may want as we go along. I have also added my fee. It is based on 10% percent of the total costs. Most contractors include 10% for profit and 10% for overhead. I appreciate you guys sticking with me. The other way things could be done is hard money contract. This sometimes leads to the low bidder syndrome, which can make building a home like this a nightmare. There are a lot of ups and extras and the contractor has to add a lot of fluff in order to ensure himself a profit. A flat fee insures that I am going to make a profit and you guys get the house built for cost plus my fee. No fighting with the contractor over how much you pay for the library. The way I propose to do this project is a flat fee based on the plans and specs I have laid out below. This would include a finished basement and Ikes office in mahogany. I propose to give you bills every two weeks for the work that has been done and you just pay them along with my fee. The fee will be broken up into a deposit and 20 bi-monthly payments. The following is an over view of what I have included in the home. I understand that there is no gas in the road so we can use oil fired hot air units equivalent to the ones I have listed here. GENERAL NOTES This proposal is based on architectural plans drawn by John Hey-rich Architect. Contractor is responsible for general liability Insurance of $1.000,000 and insurance on his own vehicles used on the site. d 0£999£Z906 oil uonoruisuoo Aeiropea EFTA00284082