To minimize uncertainty and mitigate risk, we integrate the Client, Architect and Builder into a collaborative team early in the project lifecycle. Our goal is to shape a project that meets our Client’s needs, honors the Architect’s design intent and respects the agreed upon budget.
Once this core team of trusted experts is assembled, we enlist the support of additional professionals (engineers, surveyors, interior designers), as well as subject matter experts (subcontractors and suppliers), as needed. During this highly collaborative and iterative process, our job is to align team members and ensure they are working towards a common goal. We eliminate the frustration, time and wasted dollars associated with re-design, which often happens when decision making is divorced from budgeting.
During PCS, we fully assess all project inputs — from site conditions to building envelopes, mechanical systems to cladding, and fenestrations to finishes. We generate thorough specifications and facilitate all necessary selections with our showroom partners. With this complete knowledge, we’ll propose a Fixed Price Contract, construction schedule, and detailed construction documents. All of which will be captured in The Book, a detailed binder of information necessary to expertly execute your project. The Book consists of detailed plans, specifications, selections, cut-sheets, shop drawings, schedule, and all necessary permits.
We understand that completing a large-scale renovation or custom home can be, at times, stressful, confusing and frustrating. Our process is designed to minimize surprises and maximize satisfaction. As a Fixed Price Builder, we are incentivized to develop projects that can be built on time and on budget; our interests are completely aligned with our Client’s interests. Our innovative, industry leading process was featured in the June/July 2018 issue of Fine Homebuilding magazine, where it was recognized as a best practice for how residential construction projects should be planned and executed.
FIXED PRICE CONTRACTING
There are two primary methods for contracting residential renovation, addition or custom home projects — Cost Plus or Fixed Price.
Using Cost Plus, Builder and Client agree to a markup, which the Builder applies to all costs incurred while constructing the project. In addition, the Builder collects a monthly project management fee. At each billing cycle (often monthly), the builder passes through the project costs plus markup. The total project cost, which is only known after completion, is the aggregate of these cost plus invoices. This method is inherently skewed in favor of the Builder because there is no incentive to keep the costs down. In fact, the more costs increase, the greater profit the builder earns.
By contrast, in a Fixed Price contract, all specifications, selections and pricing for your home are identified during Pre-Construction Services. Delivering fixed price contracts requires more skill and planning to identify the scope of work, methods, materials and finishes. The biggest drawback is the inordinate amount of effort required to develop this comprehensive understanding. We feel this mission critical step is often overlooked.
Benefits of Fixed Price Contracting:
1. Avoid open-ended agreements — in cost plus contracting there is no definite end cost for the project. A fixed price contract with comprehensive specifications, clearly defined scope of work and selections ensure that all parties have similar expectations.
2. Costs stay within budget — in fixed price contracting, the Client knows before signing the construction contract exactly what the final costs will be. A fixed price contract requires the builder to understand and control his costs.
3. Focus on construction, not paperwork — We spend less time producing time consuming cost plus invoices and more time on site managing, scheduling and monitoring quality.