There are no secrets in a cost-plus format. It’s an open book. We develop a pre-construction budget for your planned home based on the following:
- Bids submitted by our subcontractors and suppliers.
- A projection of our time-based costs such as supervision, site clean-up and safety, utilities etc.
- Allowances for scaffolding, and materials such as plastic sheeting, tape and other consumables used during the project.
Those items are the direct costs of the project. Our goal is to develop a realistic project budget not a low-ball cost to get you in the door.
To the direct cost we add a percentage that covers our overhead and profit. This percentage is agreed upon by you and us before construction begins. We keep strict accounting of each subcontract and purchase order activity. This allows you to track your investment. You will see where every penny is sent throughout the course of the project.
In fixed fee agreements it is not unusual for change orders to be a major profit center. With a cost-plus contract when you request a change we simply document the cost and continue under the same percentage.