Creating a contract that meets your needs
There are two basic types of contracts between a client and builder:
- Fixed-fee contracts provide set pricing for the project, with allowances (or variable costs) only for items that have not yet been defined. This can provide clients with a desirable level of certainty around cost. However, it requires that drawings and specifications be comprehensive and detailed enough to allow fees to be accurately estimated.
- Time-and-materials contracts provide the client with transparent documentation of the expenses incurred, with a percentage-based fee added to the total. For clients mainly concerned with timing, this type of contract allows work to begin before all of the plans and specifications are complete. Clients see the actual bills, and understand the structure and costs associated with labor and overhead. Where hard pricing can be obtained for any given part of the work, those parts of the cost can be fixed as they are determined.
The contracts we develop may fall into either of these categories, or be a hybrid of the two. It can make sense to provide a fixed-fee contract for early phases of the construction, where specifications are detailed and well documented, and then proceed on a time-and-materials basis in later construction phases that are not yet written in stone.
Upon careful review of your drawings and specifications, budget, and schedule, we’ll work out a contract that meets your needs to control costs and keep the project moving. We’re firm believers that any contract is only as good as the communication that supports it. We provide detailed budgets and regular reviews to ensure that you are kept fully informed every step of the way.