Fixed Cost Pricing - No Surprise Increases!

Over the years, by building numerous houses and working with all types of people, we have developed a system which allows for the same processes to take place with each family. When we use this proven process, it allows us to work efficiently, communicate with our clients appropriately, and deliver on the agreed upon design.

Once the 7 steps below are in place, it ensures a smooth project with no surprise charges. Below are the steps we use with each new home owner.

1. Detailed Estimation: Begin by thoroughly estimating all costs associated with the project, including materials, labor, equipment, permits, and any other expenses. Break down the estimate into as much detail as possible to ensure accuracy.

2. Contingency Allowance: Include a contingency allowance in your estimate to account for unexpected costs or changes during the project. This contingency can help mitigate the risk of unforeseen expenses impacting your bottom line. This typically comes in handy when the homeowner comes up with a wonderful new customization they want implemented!

3. Clear Scope of Work: Clearly define the scope of work for the project in writing, including specific details about what is included and excluded from the fixed cost. This helps avoid misunderstandings or disputes later on.

4. Market Analysis: We conduct a thorough market analysis to understand current pricing trends for materials, labor, and subcontractor services in your area. This will help ensure that your fixed cost pricing is competitive and realistic.

5. Contractual Agreement: Develop a contract that clearly outlines the fixed cost pricing, payment schedule, project timeline, and any terms and conditions. The client has time to review this and ask any questions before the work begins.

6. Transparent Communication: Communicate openly and transparently with the client throughout the project to keep them informed of any changes or developments that may impact the fixed cost. This helps build trust and credibility with the client.

7. Design Changes: If changes to the scope of work are requested by the client during the project, document these changes carefully and provide a revised cost estimate for approval before proceeding. This ensures that any additional costs are agreed upon in advance.

By following these steps, we can offer fixed cost pricing to our clients with confidence, providing them with clarity and peace of mind regarding the total cost of their construction project.

Loyl HomesMay 8, 2024