When you begin a new home construction or remodel project, finding the right builder is only part of the journey. Selecting the right contract model can shape the entire project experience and outcome. At SinglePoint Builders, we prioritize transparency, quality, and flexibility, and our preferred method of delivering projects is through the Cost Plus Delivery Model. Here’s how this model works, why we use it, and the benefits it brings to our clients.

What is the Cost Plus Delivery Model?

In the Cost Plus Delivery Model, we create a simple, transparent contract in which we provide a highly detailed project estimate and charge only for actual costs, plus a pre-negotiated fee. This means that you’re paying for the real-time costs of materials, labor, and subcontract costs as they are incurred, rather than a lump-sum or fixed-price contract. The fee added to these actual costs is straightforward and agreed upon upfront.

Why Cost Plus Over Fixed Price?

Transparency and Trust

In a Cost Plus Contract, you have a clear view of how your investment is being spent. Rather than a fixed price, which often includes buffers to protect the contractor against unforeseen costs, Cost Plus keeps each dollar accountable. You’re able to see where funds go, knowing that any changes or updates are communicated in real-time.

Flexibility in a Dynamic Process

Construction, especially custom residential projects, involves many moving parts. In the high-end Northern Bay Area market, projects often evolve as new ideas come up or design elements are adjusted. The Cost Plus Model allows us to pivot and make adjustments without restrictive budgets or constraints. This is especially useful when architectural plans are not yet fully finalized, as it allows us to adapt while staying true to your vision.

True-to-Cost Value, No Added Buffers

Fixed-price contracts require contractors to build a buffer into the overall cost to safeguard against potential risks or unforeseen challenges, which can drive up project costs unnecessarily. With the Cost Plus Model, there’s no need for inflated estimates, as we’re billing only for the actual costs plus our agreed fee, avoiding unnecessary markups.

Quality-Driven Investment

With Cost Plus, our clients know they’re investing in a high-quality outcome. There’s no incentive for cutting corners or opting for lower-quality materials to meet a preset budget. The model allows us to use the best materials and skilled labor required to meet the high standards our clients expect, providing peace of mind that every decision is made with integrity and attention to detail.

Aligned with the Reality of Architectural Plans

Architectural plans are often evolving documents, subject to updates and refinements even as construction begins. A fixed-price contract would lock down decisions prematurely, which can be limiting and costly in a custom build environment. The Cost Plus Model, however, aligns with the flexible nature of architecture and design, allowing for allowances based on what we know initially and the freedom to adapt when plans shift.

How the Cost Plus Delivery Model Benefits You

In the Northern Bay Area residential market, where every project is as unique as its location, the Cost Plus Delivery Model is not only common but also highly effective. Here’s why it’s beneficial:

• Detailed Estimates | Before we break ground, you receive a clear, detailed estimate, knowing exactly where costs are anticipated and where allowances may be necessary.

• Real-Time Budget Feedback | Throughout the build, we’ll keep you informed of costs as they occur through our detailed invoicing process, so you always understand the value of your investment.

• Flexibility to Achieve Your Vision | The model allows us to work closely with architects and designers, bringing your vision to life without the limitations of a fixed budget and the slowdown associated with extensive change orders.

At SinglePoint Builders, our goal is to deliver high-quality homes with integrity and transparency. The Cost Plus Delivery Model is a crucial part of that promise, ensuring that every decision we make is in your best interest. You’re not just hiring a builder—you’re partnering with a team committed to clarity, quality, and the shared success of your project.

Have a project in mind? Get in touch to get started!