We work on a cost plus contract basis which provides that the owner shall pay the contractor the cost of the work, plus a profit. There is complete transparency as the home owner sees all invoices from materials suppliers and subcontractors as well as labor costs. Client is in almost total control of the budget through their finish selections.
The initial budget is prepared based on all current information available (drawings; finish schedules, input from owners, architect, engineers, designer, etc.) The intent is to identify all known scopes of work and establish a reasonable budget for all components of the project. If portions of the work are unknown and are still being developed we establish amounts to be included in the budget based upon assumptions. The budget is broken down by cost code. Wade Construction works on a cost plus contract basis which provides that the owner shall pay the contractor the cost of the work, plus a profit. Wade Construction is committed to finding the best deals without sacrificing quality. Each job is run efficiently and with cost control measures in mind. A detailed estimate is provided with a breakdown of projected costs. Subcontractors have been thoroughly evaluated and proven to meet our high standards.
Advantages of a Cost-Plus Contract:
Work may start immediately without finalizing all the finishes and appliances. Client is in total control of the budget through their finish selections. Changes may be made during the construction phase as advisable by the contractor and not subject to change order costs.
Client may realize savings due to a falling market or other favorable cost conditions during the course of the work. There is complete transparency as the home owner sees all invoices from materials suppliers and subcontractors as well as labor costs.
• Home owner may speak freely with suppliers of fixtures, appliances, doors, windows, etc. regarding contractor’s price.
• Home owner knows contractor’s profit margins.
• Opportunity to select the contractor on reputation alone. No temptation on contractor’s part to furnish other than first-class workmanship and materials.
• Owner has a complete record of project cost.
• Contractor cannot influence the costs for added work or changes in the project, which is common with a “lump sum” project.
• Contractor cannot lose money on the project which eliminates the potential for a reduction in quality.