When a builder constructs a house without a contract, it is known as a spec house or a speculation home. There are several advantages to the builder to build a spec house including timing, financial gains and workforce retention. There are advantages to the buyer to purchase a spec house as well. These include no delay in moving in, an overall lower price, and a simpler contract.
Workforce retention is one of the three primary goals of all small businesses. Workforce retention means to provide security to the employees. One of the elements of security is providing regular work. This maximizes the opportunity to retain the workforce of the company.