How are we different?
Normally when you contract with a builder you either enter into a “Fixed Price” contract or a “Cost Plus” agreement. Frankly, both have their potential drawbacks.
Under a Fixed Price agreement there is a natural incentive for the builder to deliver your project at the lowest possible cost, as what is left over after all costs have been tallied is profit. When striving for the least cost sometimes quality can suffer as a result.
Under a Cost Plus agreement, each time you add or upgrade features those features are encumbered with an additional fee that is paid to the builder. Under this arrangement it is possible that you will pay your builder fees in excess of the value provided simply due to the price of the features you selected for your home. Additionally, in a Cost Plus agreement there is a tendency for builders to “under-bid” the estimated costs in order to win the job, knowing that the true cost of the project, and their subsequent margin, will be higher.