“What’s the difference between a fixed price agreement and a cost plus agreement?”

We are frequently asked this question.

Fixed Price Agreements

Our Construction Agreements are typically based on a “fixed price”, which means we set the total cost of building your new home prior to construction.  In our Agreement, we show the total cost to build, but not the breakdown of the various levels of construction.  This gives customers the comfort of knowing the final price of their new home.  The cost we quote you to build will be the final cost, unless you change your mind.  If you do, we will carefully cost out the change and let you know what the cost of the change will be before we proceed with a Change Work Order.  If no changes are made throughout the construction process, your cost to build remains the same.

Cost Plus Agreements

If a customer desires the flexibility of decision making and feels a number of changes could take place during the construction process, we also offer a “cost plus” Construction Agreement.  This method is far more detailed than a fixed price budget and will itemize various levels of the construction process.  The cost to build your home is based on our actual costs for building plus our management fee.  Throughout the construction of your home you will be updated regularly on the actual budget numbers and will play a large role in budget decisions.

We are happy to accommodate both types of Agreements and will help you determine which will suit you best.