Contractor Comparison and General Pricing Information
Contractor Comparison and General Pricing Information
When it comes to evaluating the credentials of various contractors that you may be speaking to, you might want to download this comparison resource. It gives specific questions to ask of each company you are interviewing. If you use this page and you get down to about question #7 and the person is hesitant or is avoiding answering the question you need not complete the interview. If that happens you are speaking with a company that probably less than professional in their approach to the remodeling process.
Blue Ribbon Residential Construction maintains relationships with several local banks and credit unions. We can guide homeowners, depending on the project toward the most logical lender. For our design/build projects, Blue Ribbon Residential Construction generally prefers a Fixed Price agreement, which is fair to both parties with a set job cost and favors neither the homeowner nor the contractor. Cost Plus although not preferred may be appropriate for some types of very complex work, very old homes with significant unknowns, Historical Restoration where other entities have input on design and etc.
Fixed Price Agreement
With this type of agreement, there is a set price for the work as outlined in the specifications and plans. This set price method is the best way to avoid changes and additional work orders. It will only be adjusted based on customer alterations and discovery of unforeseen site conditions, such as bad ground in the area of construction, termites or deficiencies in the existing structure. The payment schedule is outlined in the construction agreement. Payments are linked to phases of work i.e. start of framing, beginning of painting, and the subsequent payment is due five days later when we are well into that phase of the work.
Change orders are unfortunately a part of our business. We strive very hard to minimize change orders by doing a very thorough job in the pre construction phase and planning for contingencies. We do however want to make your project as personal as you want and therefore look at change orders as clarifying what you really want your project to look like. During the construction of your project be cautious of “scope creep” (adding items on the fly) and its impact on budget. Remodeling can be an exciting process and during the process, adding bells and whistles can really drive the numbers.
Cost Plus Agreement
For projects handled by Blue Ribbon Residential Construction that fall under a Cost Plus agreement, we have a very sophisticated method of tracking expenses on your project. All costs are tracked and only time and materials dedicated to your project are billed. Production efficiency is based on a normal crew working a normal day.
All costs are tracked and compared to the target budget. With a Cost Plus agreement, Blue Ribbon invoices the client weekly based on job flow, current bills and time cards. All costs for the period are tallied, and the General Contractor adds a specified percentage to cover the company’s overhead and profit.
Change orders are billed at the going rate. Change orders are still used, but only for information and clarification.