Sonbuilt Custom Homes Ltd provides two methods of pricing for their customers based on the Construction Standards Institute 16 division format. Our pricing structures give our customers the option of choosing between our fixed price method and our cost plus method.
Fixed Price Method
The fixed price method gives us, the builder, control over the budget by setting the total cost of the new home prior to construction. Our cost will include assumptions for the construction of your home as well as a discretionary margin for contingencies and profit.
When a fixed price cost is chosen we will give you allowances for a few key areas such as floor coverings, tile and lighting within one final cost for your home. You, the customer, may make changes, however, prior to changes being approved, a change work order must be signed by both the customer and the builder. Change orders may slow the construction of your home and deadline extensions may be incorporated into the change order.
This pricing method is beneficial for those customers who know prior to the construction of their home what they want and they are not planning on making many changes to their construction contract. It can also be very advantageous for customers who desire the comfort of knowing the final price of their new home.
Cost Plus Method
Cost plus pricing allows the customer the flexibility of decision making without the burden of change orders and contingency fees. The customer may not be able to predict every detail of their home and they may wish to make decisions and changes as construction takes place.
A cost plus price is far more detailed than a fixed price budget and will itemize various levels within the divisional breakdown. The cost of your home is based on our actual costs for building your home plus our profit margin.
This method of pricing is beneficial for those customers who know they will make many changes to the construction of their new home as it progresses, however, there is a greater responsibility to the customer to hold their ideas and possible changes in strict control. The customer is responsible for all cost and budget overruns due to changes along the construction process.
Summary
Both pricing methods are determined using our sixteen division breakdown once the design of the home has been finalized.
Once we know what you are planning for your new home in terms of details like exterior cladding, roofing materials, finishing etc, we will go about the process of contacting our various suppliers and trades for accurate pricing. This process may take a few days to a few weeks and will help us accurately determine the cost of building your new home.
Each method of pricing has it advantages. Fixed price offers the comfort of knowing the final cost of your new home and cost plus gives you the flexibility of making changes with the knowledge you are getting exactly what you pay for.
