How does Constructive Builders set up its custom home fees?
There are three common ways for contractors/builders to work with clients. We are open to exploring any one of these options, depending on what works best for the type of project and the client: 1) Fixed bid. This option offers the least flexibility for clients, but for some clients it provides the most peace-of-mind in terms of knowing exact costs. The downfall with this is that if costs come in lower than we estimate, the savings do not get passed on to you. 2) Cost plus. With this option, Constructive Builders would earn a percentage (the industry standard is 15%) of the total cost of the project. In this option, if the client chooses more expensive tile, 15% on top goes to the builder. If the stucco comes in under-budget, then the builder earns less. 3) Cost plus a fixed builder fee. At Constructive Builders, we think this option is the fairest and most “open book” option. With this option, we’d create a budget for the project and then set a builder’s fee. The builder’s fee would b
