Contract Options
Fixed-Price vs Charge-Up Contracts: Which One Is Right for Your Project?
One of the biggest concerns clients have when starting a building project is sticking to the budget. That’s why it’s important to choose the right type of contract before the work begins – either fixed-price or charge-up. Each option has its advantages, and the best choice really depends on your project, your level of involvement, and how much financial certainty you’re after.
Before locking anything in, here are a few factors to consider:
- Your overall budget;
- The scale and complexity of your project;
- How involved you want to be in the process.
Fixed-Price Contracts
If budgeting is your top priority, a fixed-price contract can offer peace of mind. These contracts give you a set cost upfront, making it easier to secure finance and plan ahead without surprises. Lenders also tend to prefer fixed pricing for this reason.
Fixed-price contracts work especially well for straightforward projects like new builds or simple extensions, where we can accurately estimate materials and labour. With this level of predictability, you’re less likely to be hit with unexpected costs during the build.
However it’s worth noting that even fixed-price contracts can come with a few surprises. It’s rare for a project to be entirely free of extras or variations, so be prepared for the possibility of some additional costs. We are only able to price what we see on the plans or on site so until walls are removed or holes are dug, there is no way to know what we will find! If the team find any concerns, we are able to suggest PC Sums to assist in budgeting for such items.
Charge-Up Contracts
Charge-up (or cost-plus) contracts are a more flexible option. You’ll pay as the work progresses, based on the actual hours worked and materials used. This makes it harder to predict the final cost, which can feel like more of a risk, especially if you’re working with a tight budget.
That said, charge-up can work well for more complex or evolving projects, like major renovations where unknowns often crop up once walls come down.
This type of contract suits clients who are happy to stay actively involved in the project and make decisions along the way. If you’re open to that, a charge-up approach can give you more control and even lead to cost savings.
So, Which Contract Should You Choose?
At the end of the day, the type of contract is just one part of the puzzle. What matters even more is choosing the right builder – someone experienced, transparent, and committed to properly scoping your project from the outset.
At Broadbelt Builders, we offer both fixed-price and charge-up contract options and will guide you through which one suits your project best. We believe in open and consistent communication, detailed planning, and tailoring the contract to your specific needs to ensure a smooth, stress-free experience.
Have questions or want to chat about your upcoming project? Get in touch with our team, we’re here to help!
