by the project
By the project is best for the client.
The best price for the home owner will come with a bid for the entire remodeling project. It forces the contractor to place a competitive bid and stick to his proposed schedule. With any remodel project, there are many unknowns, and a seasoned contractor will factor in a buffer to cover the unforeseen costs. This is why it is important to collect many bids and do not accept the lowest bid.
Every job is different, most jobs I price by the project, Sometimes when working on a project and the customer adds little extras I will bill these items by the hour.
A lump sum bid is by far the best way to proceed. It looks the contractor into a price with a stated scope of work. In remodeling a seasoned contractor will buffer a certain amount to cover the unforeseen. When ever additional monies are required a change order should be used outlining the changes or additional work and the cost
For project is the best for both customer and skilled contractors. Why? Because time is money so as the project take less time as you can make more projects and earn more money. I know that usually the less skilled guys prefer charge you per hour.Then the project look like " never ending story …"
By the project as then the contractor has set a prices and schedule to be held to.