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There are many ways that builders and contractors charge for their services. Some of these are based on fixed prices, where they give you skinny fixture and finish allowances in order to provide themselves a margin to hedge against cost overruns and often times will get you excited with a low figure only to get money out of you later. Other builders will give a “lost leader” price in an open budget format, combined with a low management fee. More often than not, these contracts end up being a façade as the builder ends up making additional money on the back end through mark ups on materials, rebates, contractor discounts/incentives and a litany of change orders.
There are benefits and drawbacks to every scenario, but in reality many people would rather not really know where the money is going or would rather convince themselves that they are getting the best price from the beginning…no matter what happens throughout the project.
Although we can charge any way our client desires, we have a different philosophy in general. We believe that the only effective way to manage projects—especially in the day where most often custom projects are financed by the customer – is to charge a flat contracting and design fees for our services. That fee – a % of the budgeted amount of the project not including property – will vary from project to project, depending on location, scope, timeline and overall design parameters.
First of all, we pass our contractor discounts on to our customers. When our clients go into a supplier to pick out fixtures for their home, they talk real prices rather than hearing a “consult your contractor for the price.” Our customers get to see every dollar that is in their budget, and should the project be trending under they can spend the extra dollars where they see fit. And, should we arrange the finances of your project this way we do not issue change order fees. In addition to the financial benefits on construction materials our custom build clients also get our interior design services at a reduced fee.
We are confident that by empowering you to weigh in on the fiscal decisions of your project – while giving you a guide and counsel to maximize your investment – you will get the home you desire. We know that transparency in every facet of the project is the only way to gain your trust and keep the costs as on track as possible. In the end, you are the boss so why not give you the flexibility to truly build the home you dream of?[/ppb_text]