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 HIA CSR NSW HOUSING AWARDS 2008 WINNER - Renovations & Additions Project under $600,000 2006 WINNER - GreenSmart Energy Efficiency Award |
Benefits of a cost Plus contract over fixed price contract:
- We supply a full Price Bill of Quantities to use as a budget during construction.
- Our estimates allow for on site Foreman Duties by our tradespeople.
- Budget cost comparison guides are provided on a fortnightly basis (on average).
- Allows clients more flexibility to use preferred suppliers.
- Clients can take advantage of builder’s discounts on materials and trades.
- You are able to build using the same method a builder would use himself allowing you to build by the most efficient means.
- More control for clients who wish to be involved in the decision making throughout the project.
- Generally there are fewer variations and the higher rates for contingencies included in a fixed price contract can either be removed for a saving or diverted to other areas.
- You can take advantage of using some trades at day rates as most builders do. This avoids risks associated with trades rushing to complete.
- Less paperwork. Weekly site meetings with fortnightly progress cost reports allow flexibility for you to make decisions regarding budget.
- Builders margin is less on a Cost Plus Contract.
Question: What is the best result / goal that can be achieved with your project for both parties? Answer: You have your dream renovation / home completed on budget, constructed with-in the schedule time, and very high rate of satisfaction.
Your builder makes a margin that is fair and has a completed project to be proud of, being a possible award winner.
"The opportunity is available for you, as our client, to engage one of the most reputable & creditable Building Construction companies with a successful track record using the Cost Plus Contract".
"The Process remains the same, where we provide a fully categorised cost estimate of the project works prior to contract. This estimate document (commonly called the Priced Bill of Works) is then used as a Budget guide during the construction program. We provide this cost comparison guide via excel spreadsheet on a regular basis, (normally per fortnight)."
"Monitoring of our estimated job costs with our clients at Tender stage indicate that we are competitively priced in the mid-range of 3 quotes".
"Cost Plus Contracting with DM Carr Constructions P/L is a WIN/WIN situation for both Parties. You, as our client, will achieve the hassle free high quality finish for a fair market price. We as your builder are able to construct your project with a guaranteed builders margin, discounted from the higher margin used under a fixed price contract".
"Allowances are also built in to our estimates for on-site foreman duties from our tradespeople, which when combined with our supervisors inspections, allow the project to run smoothly, very efficiently and within the time schedules allowed"