I generally work on a time-and-materials basis, with a specified percentage added to the total.  This is known in the industry by the term “Cost Plus.”

The Cost of a job is made up of

• the time I put into managing, designing,  and/or performing work on a project, all billed at an hourly rate
• employee wages
• material costs
• subcontractor costs (on larger projects, I generally subcontract out foundation work, plumbing, electrical, roofing, drywall, and masonry.)

The Plus part of the job is the percentage added to the total of the above Costs to cover business overhead and profit.

I have found that using a Cost-Plus contract is a good fit for the way I run my business.  I first give you an estimate with a detailed description of work that is organized to reflect the flow of the construction you want performed.  This estimate is the foundation for our communication of the project, and I take it very seriously to accurately portray the scope and the cost of the project.  Then you are billed for what the project actually costs.

If, after going through the estimating process, you find the cost of your project to overrun your current resources, I will creatively work with you to explore options that may allow you to proceed with your project.  These options may include changing the scope of work, putting off certain aspects of the project, surveying how you might physically participate in the project, etc.

Working Cost/Plus has advantages.

• You get what you pay for and the cost is upfront for the entire process.  Incentives are removed to give a low bid in order to get the project, where, subsequently, deficiencies can be made up with change orders which are inevitable in most projects.
• You get a detailed biweekly invoice which ties back into the original estimate.  This tracks spending and change orders, and updates and projects budgets throughout the project.
• Every client is unique and a Cost Plus contract is better suited to address this.  Expectations vary greatly, as well as the amount of detail given to design and execution.  The differing costs associated with unique client expectations are fairly charged for.
• Every house worked on is also unique.  With existing structures, some require much more attention than do others.  The age of the structure and original quality of construction vary dramatically from house to house.  While an overall assessment can address some of this variation, there are sometimes unexpected instances that a Cost Plus contract can more easily address.