Designing and building in the current market is certainly not without its risks. One of the biggest risks you have as clients is the moment you put that pen to paper and sign a construction contract! 

There are two main types of contracts when it comes to building and construction. 

• A Fixed-Price contract, or 
• A Cost-Plus contract. 

At Rodrozen Design and Build we recommend and predominantly use fixed price contracts as these bring so much certainty with your project to you as our client. 

FIXED PRICE CONTRACT

We provide you with a fixed price for your project build before we start. And at the end of the project, you pay that price. 

Once we have decided on the design of your project, we go out and source all the quotes from our various suppliers and contractors. We compile all these quotes, add our fee as builders and project managers and we give you a fixed price for your build. 

Given the uncertainty in the markets, inflation, supply, and shipping challenges, we take on these financial liabilities so that you don’t.

We believe this provides you with so much more financial certainty as clients go into a build. Furthermore, if you need to secure financing, a fixed-price contract makes this so much easier. 

COST PLUS CONTRACTS

Cost plus contracts involve the builder creating an approximate budget before the build, then adding a percentage of costs as builders, and at the end, you pay the cost of the build including any cost overruns. 

In the end, if there are any unexpected changes in prices, for example, a supplier has increased the price of a particular product during the build (which is common given the ever-increasing cost of building) then you as the client bear the cost of this.

CHANGES

The only constant is change rings true in the construction industry. Plans change as construction takes place, often our clients have new ideas or want to change a finishing as we progress. When this occurs, we get a new price for the change, we run it past you for approval, and then we go ahead, simple!

The same also applies to unexpected issues, for example, if a gas main needs moving that was not expected, we go through a similar process with you before we commence any changes.

TRANSPARENCY

A large amount of criticism is directed at fixed price contracts as they supposedly don’t show a complete breakdown of the costs involved in building. We complete a very detailed budget before we start building, and in this, we detail the full cost that you will pay for each item in your build. We also create a detailed work scope so that you know exactly what it is that we are going to do as builders.

We hear it time and time again, we have several homeowners who talk to us after their builds have finished, and they regret not using a fixed-price contract. The cost of their project went well over what they expected. Most building firms in Vancouver use Cost Plus contracts as they push the liability onto you. At Rodrozen Design and Build, we recommend and predominately use fixed price contracts, we take the responsibility of ensuring your project comes in on budget and on time.

WANT TO BUILD WITH A FIXED PRICE CONTRACT?

Contact us today to arrange an obligation-free consultation with one of our designers today who can talk to you, listen to your ideas, and get to know about your needs now and in the future, to design and build something that will last a lifetime.