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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 fair margin and has a completed project to be proud off, 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)."
"Constant monitoring of our estimated job costs at tender stage continually see our estimates at the middle of the range (when comparing estimates with two other tenderer's), supporting our claim that our estimates are a fair indication of actual cost".
"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"