Question about Turn-key Flip contracts

[Alex R.]

Hello Guys

I am a new member to this forum and new to real estate too. I have a question about the flip projects.

Is that possible (or common) to sign a turnkey agreement with a contractor for the flip? So that they will provide all the materials and labors and get the project done for a certain amount with a specified deadline. If so what are advantages or disadvantages of this approach?

I think this will make it much easier for investor to know how much exactly his expenses will be and also saves him lots of hassles and expenses.
Also you can put a late fee penalty in the contract that if flip is not complete within deadline, for every day of delay there will be a fee that contractor will be charged.

What do you think about the whole thing? Is this good? Will contractors accept this type of contracts?