Worried about increased expenses related to variations on your upcoming construction project?

May 15, 2024

Clients often worry that the final cost of the project will exceed their budget or that unexpected expenses will arise during the construction process. This fear is understandable, as construction projects can be complex and there are often unforeseen circumstances that can impact the budget.

However, these risks can be reduced, or even eliminated simply by working with a reputable building company that provides a detailed and accurate fixed price quote covering the project's plans, specifications and inclusions rather than a free estimate containing allowances.

Managing and Avoiding Unpredictable Costs

Managing unpredictable costs during a home construction project can be a daunting task, but there are strategies that clients can employ to navigate this challenge effectively. One such approach is to opt for a fixed price bid, where the contractor provides a comprehensive quote for the entire project based on the client's selections and specifications. By obtaining a fixed price bid upfront, clients can have greater clarity and certainty regarding the total cost of the project, minimizing the risk of unexpected expenses down the line.

Opting for a ‘Fixed Price’ contract over a ‘Time and Material’ build can provide clients with invaluable peace of mind throughout the construction process. With a fixed price agreement, clients have clarity and certainty regarding the final cost of their project from the outset. Even if market conditions cause material costs or labor rates to fluctuate during the construction period, the agreed-upon price remains unchanged for the

Additionally, once the building process has commenced, it's essential for clients to adhere strictly to their chosen selections and specifications without making any changes. Any alterations to the original plan can introduce uncertainty in completion date and potentially lead to additional costs.

By maintaining consistency in their choices and resisting the temptation to deviate from the agreed-upon scope of work, clients can help ensure that the project stays within budget and progresses smoothly to completion. Through careful planning and adherence to a fixed price bid, clients can effectively manage unpredictable costs and enjoy a successful and stress-free home building experience.

The Benefits of Opting for a Fixed Price Contract in Construction

client. This eliminates the uncertainty and potential for cost overruns commonly associated with time and material builds, allowing clients to budget effectively and plan for their investment with confidence.

Furthermore, a fixed price contract incentivizes contractors to manage costs efficiently and complete the project within budget. Knowing that any cost overages will be borne by the contractor, rather than the client, encourages careful planning, prudent decision-making, and effective cost control measures throughout the construction process. By choosing a fixed price contract, clients can enjoy the assurance that their project will be delivered on time and within budget, without the stress or anxiety of unexpected expenses looming over their heads.

The advice we’ve provided here is only a fraction of what you need to know to start your design journey well-prepared.

To assist you further, I've compiled a quick guide for you:

"The 7 Things You Must Know Before Designing a New Home."

It's entirely free and will help you steer clear of any unpleasant surprises that can occur during the custom home building process.

Click the link below and share your email address to get your copy.