Estimating ehab costs and checking contractors

[John McKinnon]

Closing on my first property tomorrow in Concord NH and I just received my first quote for finishing the rehab on the studio unit on the second floor. The 3 room unit (kitchen, bath, living room) is partially rehabed. The bath only requires adding a fan and putting toilet and sink back in. The kitchen needs the ceiling replaced floor replaced walls touched up and a few other little items. The living room is done. The contractor, who comes recommended by a BP member and as a heavy construction contractor he speaks my language, and I see us developing a long relationship. When he gave me the pricing to finish the unit I was a bit taken a back. The studio is about 360 SQ and the rehab cost is $11,500-$12,000. He said it could be lower, but thats what he quoted. Thats about $32/SQ. All appliances, toilet sinks, etc are existing. Just as a gut feeling, does this sound reasonable. Everything I know tells me to get another price, but based on the reference and my interaction with him, I think hes fair. Just looking for the communities feedback.

Another point to add, which I think I like; He isnt quoting a set price. He works off the cost of materials and an hourly rate for his crew, which is based upon the crew onsite and their time. What experience do you have with this. Would you rather a set price or have the contractor work on a T&M basis?