Why I Stand Firm Against Cost-Plus Contracts

Some builders prefer cost-plus contracts because it eliminates their risk, passing every cost increase, inefficiency, or mistake directly to their customers. I refuse to operate that way and here’s why.

Fixed-price contracts are fairer for everyone involved. They ensure that you, the customer, get an accurate estimate from the start, and that’s the price you pay. When costs go over, it’s my responsibility to manage the overruns, not yours. Fixed-price contracts drive me to maintain efficiency and keep a keen eye on costs because I share the risk with you.

Under a cost-plus system, if lumber prices spike, it’s the customer’s problem—not the builder’s. Over-ordering materials? The customer foots the bill. If the project drags due to poor scheduling, extra supervision costs get passed on to the client. This removes any incentive for builders to be efficient or cost-conscious.

With fixed-price contracts, I’ve got skin in the game alongside the customer. It ensures I’m just as committed to the budget and timeline as you are. My approach is simple: I put my money where my mouth is to ensure you pay a fair price for your custom home.

Let’s discuss what fair pricing can look like for your project. Give me a call at (469) 853-7952 to go over your specific situation and get honest answers.