Pre-Production Planning and Estimates
Our Methods of Work
The two main types of contracts for a custom home or remodeling project are cost-plus and fixed price. In a fixed-price contract, the total cost is predetermined. However, with cost-plus, the expenses are estimated but the final price isn’t determined until the project is complete. Let’s further break down the details of what makes cost-plus and fixed-price contracts different and weigh the pros and cons of each and both Cost Plus and Fixed Price contracts can be Design Build, a Competitive Bid, or a Negotiated Contract.
- Fixed Price: The most common type of remodeling or building contract where the homeowner knows the end cost of the project from the beginning. It will include all materials, labor, fees, and other costs as well as the contractor’s overhead and net profit . Fixed price bids are typically higher than cost-plus because the contractor is taking on more risk and needs to perform a detailed breakdown of the project with the estimate costs involved. Typically develop a Fixed Price Contract the contractor will be more experienced and have an extensive industry knowledge about material and labor costs. Homeowners know the price going into a project and will pay that price, regardless of costs that may arise due to errors on the side of the contractor or increased material costs.
- Cost Plus Remodeling Projects: A method that has no fixed contract price with the possible exception of a not to exceed ceiling price. This procedure is best used in a situation where there are numerous unknown conditions that can effect the work throughout the construction process.
- Negotiated Contracts: Usually a hybrid or combination of methods whereby the final construction documents and scope of work is modified because of budget restrictions.
- Cost / Plus: A method that has no fixed contract price with the possible exception of a not to exceed ceiling price. This procedure is best used in a situation where there are numerous unknown conditions that can effect the work throughout the construction
- Competitive Bid: Occasionally a client may approach us with a complete set of plans already in hand and they have real interest in us performing the work to execute the project. The most popular and well known method of contract work. We will provide limited bid proposals in a pre-qualified situation.
Thanks For Visiting The Newly Remodeled Paradigm Building & Remodeling Website
Yeah, this is the March of 2017 remodel and while I have the basic site architecture and design done like a newly remodeled home I haven't yet furnished all the rooms yet so there is a lot of incomplete or even missing content and for that I apologize. If you came to this particular web page looking for something feel free to use the website contact form and write me about it or use the phone number in the header to give me a call.