Archadeck of Raleigh-Durham Offers Fixed-Price Contracts for Your Peace-of-Mind
When it comes to home improvement projects, signing a contract with a builder or service provider is a momentous step. After research, design consultations, and material choices, the contract lays out the final details and scope of a project. Contracts are the culmination of a great deal of planning and often mark the point at which a project officially begins. Outlining an agreement in writing sets expectations and safeguards for both the homeowner and the service provider.
Typically, there are two main types of construction contracts. Some builders write "cost-plus" – also known as "time and material” – contracts." At Archadeck of Raleigh-Durham, we write "fixed-price" contracts.
What is a Cost-Plus Contract?
Growing more prevalent over the years, "cost-plus" or "time and materials" construction contracts are structured so that the clients’ price is based on the service provider's hourly rate plus the expenses for whatever materials or services the client wants. If the prices for the clients’ options change, the price will as well. Increases may arise from situations where the man-hours required are more than anticipated or if the cost of materials rise.
What is a Fixed-Price Contract?
In contrast, a fixed-price contract offers a price guarantee from the time the contract is signed. As long as the scope of the project stays the same, the pricing is fixed. Even if the time required to complete a project is more than anticipated or the cost of materials for the project increases, the original contract price does not rise. Design or material changes that are made to the original project plan, however, are different. These may increase the project cost, which would be documented and approved by the client in an addendum to the original contract.
The Benefits of Fixed-Price Building Contracts
During a time when there are supply chain issues, material shortages, growing inflation, and/or unpredictable delays, the final cost of a project could change significantly for a homeowner on a cost-plus contract. Fixed-price contracts provide peace of mind by ensuring clients won't pay more than the agreed-upon price. If you are considering renovating or adding a new outdoor living space during uncertain times, our pricing guarantee may more important than ever.
At Archadeck of Raleigh-Durham, our fixed-price contracts allow budgeting certainty for our clients. If you’re actively thinking of an outdoor living project such as a deck, porch, or three-season room, now is an excellent time to get started. If you are in the Raleigh, Durham, Cary, or Chapel Hill areas, please give us a call to set up a design consultation: 919-973-1523. We look forward to working with you!