As our economy continues to drain our wallets, CH Construction looks for ways to decrease the cost for ourselves and our customers. One way we are looking to help our customers is to switch from bid contracts to cost plus contracts. If you are unfamiliar with the term “cost plus contracts” the term means; the contractor bills the client for his direct costs for labor, materials, and subs, plus a percentage to cover his overhead and profit. Some people may be concerned about time delays with a company using cost plus contracts, thus increasing cost. CH Constructions prides itself on our work and meeting deadlines. Our focus is on customer satisfaction and customer referrals.
Benefits to hiring a cost plus contractor
Why are we switching to cost plus? We want our customers to feel confident with our work and not worry about hidden cost. Consequently, when a contractor uses cost plus contracts, there is no hidden cost.
- For jobs with a of lot unknowns, a contractor does not have to pad the price for uncertainty.
- A contractor can get started quickly on jobs with many unknowns and incomplete plans.
- You pay only for work completed, with open books, at a known rate.
Consider when hiring a cost plus contractor
Firstly, have a definitive plan and scope of work needing to be complete. If there are last minute changes or additions, as a result, it will increase the overall cost. Secondly, communicate with the contractor in an email to document all changes. Verbal communication alone can lead to misunderstandings. As a home owner we have some recommendations to review before starting a project.
- Start with a detailed scope of work, with detailed plans and specs. CH Construction has an in house draftsman. Or you can hire an independent draftsman. Therefore, both parties have a clear understanding of the work to be done.
- Get a clear list of reimbursable costs from the contractor, to avoid misunderstandings.
- Have the contractor provide detailed records of all reimbursable costs when billing. This should be an open-book approach.
- Only use a contractor with a sterling reputation and good references for similar jobs.
CH Construction wants you, the home owners, to feel confident and safe with our contracts. Our crew is professional nonsmoking craftsmen. We do not take unnecessary breaks and respect the home owner’s property and clean the job site up daily. We strive to treat others and their property as we would our Creator. Most importantly,we want the homeowner to be completely satisfied with our work. CH Construction looks forward to hearing from you and will be happy to answer any questions you might have. To book a consultation, call 913.208.2393 and ask for Brandt.