Pricing

Projects can be priced as cost plus, or a fixed price contract. Depending upon the services needed and the demands of the project, either can be suitable for your individual needs.
Fixed price contracts can be most efficient if the details of the project and the scope of work is clear. In cases where the client has a drawn plan (blueprints) this is a good way to proceed. Any changes to the plan can be priced prior to the commencement of the stated change. In the fixed price contract a detailed estimate is provided with a set dollar allowance for any unspecified finish items. Examples would be tile, electrical or plumbing fixtures, flooring, etc.
Cost Plus pricing allows the client to be in control of the project costs from the onset and works well if there is no specific plan, or if the project is a smaller repair. On certain remodels the cost plus method works well should the scope of the work be difficult to estimate due to unknown circumstances, (i.e. unknown existing sub- structure, utilities, finishes, etc.). Cost plus also allows a client to commence without delay should that be necessary. In the cost plus method the quote would be the hourly rate and a percentage or mark up on goods and services provided.

Projects can be priced as cost plus, or a fixed price contract. Depending upon the services needed and the demands of the project, either can be suitable for your individual needs.

Fixed price contracts can be most efficient if the details of the project and the scope of work is clear. In cases where the client has a drawn plan (blueprints) this is a good way to proceed. Any changes to the plan can be priced prior to the commencement of the stated change. In the fixed price contract a detailed estimate is provided with a set dollar allowance for any unspecified finish items. Examples would be tile, electrical or plumbing fixtures, flooring, etc.

Cost Plus pricing allows the client to be in control of the project costs from the onset and works well if there is no specific plan, or if the project is a smaller repair. On certain remodels the cost plus method works well should the scope of the work be difficult to estimate due to unknown circumstances, (i.e. unknown existing sub- structure, utilities, finishes, etc.). Cost plus also allows a client to commence without delay should that be necessary. In the cost plus method the quote would be the hourly rate and a percentage or mark up on goods and services provided.

Comments on this entry are closed.