When it comes to building your dream home, understanding the construction contract process is crucial. At Homes by Hendriks, we believe in transparency and clarity throughout the entire construction journey. One of the contract options we offer is a cost-plus agreement (also called a project management or “PM” agreement), which provides our clients with flexibility and control over their custom home project.
What is a Cost-Plus Agreement?
A cost-plus agreement, also known as a project management agreement, is a type of construction contract where the homeowner pays the builder for the actual costs of construction plus a fee. This fee typically covers the builder’s project management services and overhead costs.
How Does it Work?
Initial Consultation
- During the initial consultation, we discuss your vision, budget, and timeline for your custom home project.
Cost Estimate:
- Based on the information gathered during the consultation, we provide you with a detailed cost estimate for the project. This estimate includes the cost of materials, labor, permits, and any other expenses associated with the construction
Project Management Fee:
- In addition to the actual construction costs, we charge a project management fee, typically ranging from 10% to 15%. This fee covers our project management services, including overseeing the construction process, coordinating subcontractors, and managing the budget and timeline
Transparent Billing:
- Throughout the construction process, we provide you with regular updates on the project’s progress and the incurred costs. You will receive detailed billing statements, so you know exactly where your money is being spent.
Flexibility and Control:
- With a cost-plus agreement, you have more control over the construction process. You can make changes to the design or materials used during the construction without incurring additional markup fees.
Benefits of a Cost-Plus Agreement:
Transparency:
- You have full visibility into the costs associated with your custom home project, allowing you to make informed decisions.
Flexibility:
- You have the flexibility to make changes to the project without incurring additional markup fees.
Quality Assurance:
- Our team is committed to delivering high-quality craftsmanship and attention to detail in every aspect of the construction process.
Why Choose Homes by Hendriks?
As a leading custom home builder in the Niagara Region, Homes by Hendriks is committed to delivering exceptional quality and craftsmanship on every project. With our cost-plus agreement option, you can have peace of mind knowing that your project is in good hands. Our experienced team will work closely with you to bring your vision to life while staying within your budget and timeline.
If you’re ready to start building your dream home, contact Homes by Hendriks today to schedule your initial consultation. Let us help you turn your dream home into a reality!
