Pricing Options
Blue Ribbon Residential Construction maintains significant relationships with GE Capital, Capital One Home Improvement Financing and other lenders. We can help homeowners with financing and offer several pricing options, depending on the project. For our design/build projects, Blue Ribbon Residential Construction generally prefers a Fixed Price agreement, which is fair to both parties 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.
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.
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 is adjusted based on allowance selections 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 etc.
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.