Understanding Cost Plus
Most projects over $150,000 have over 125-line items and require 40 hours to complete. This time is spent on :
• Material takeoffs
• Researching costs
• Detailing plans for subcontractors,
• Product cost analysis with clients,
• Site visits with clients or subcontractors,
• Etc.
Prices change much too fast these days to assume square footage estimates for your project. All projects need to be detailed out and forwarded to each subcontractor for pricing. Additionally, site-work, electrical, mechanical, and plumbing subcontractors must walk the existing project to verify pricing.
Clients requesting a proposal must have architectural and engineered drawings prepared in advance.
If you don’t have an architect, engineer, or civil survey, we can handle that for you
If you're interested in using a cost-plus contract for your project, below is the list of steps required for us to develop the most accurate contract.
3 Steps to Build Your Proposal
Step One – Confirm existing residence
• We will work with you throughout the proposal process to ensure your existing utilities are suitable for your project.
o Site walk existing house with subcontractors to confirm
▪ Site-work and feasibility for project including access or obstacles
▪ Electrical up to date and accessible
▪ Plumbing up to code and sized properly
▪ HVAC condition and sized properly
o Client meeting to confirm basic details
▪ Comfort (how do you want it to feel)
▪ Design (what do you want it to look like)
▪ Use (what will it be used for)
▪ This and That (if we add this, how does it affect that)
▪ Builders’ notes (the things you wouldn’t think about)
Step Two – First Draft
• Once basic details have been established, we can begin building out your proposal o Site plans, concrete plans, framing plans, siding & roofing details, doors & window schedule, plumbing plans, electrical plans, insulation details, paint and HVAC plans get sent to at least (3) three different subs or suppliers for pricing. o Allowances are set using industry averages for plaster, flooring, trim, and final finishes
o Second meeting to check proposal against budget and make changes as necessary
Step Three – Finished Proposal
• Complete detailed proposal with final finishes from kitchen and bath designer (if used) o Final finishes include flooring choice, tile, kitchen and bath design, cabinets, custom built ins, hardware, colors, etc.
Example of Bathroom Build Out
Proposals will be as detailed or as generic as necessary for each project. If specifics aren't known, or clients choose to make decisions as they come, we will use allowances to fill those budgetary items.
• Master Bathroom
o One white 70’’ Schon Aiden acrylic soaking tub
o One Glacier Bay, Single handle, floor mounted, tub faucet in chrome
o One white 61” His and Her vanity with white marble top
o Two Glacier Bay, 2 handle, high arc faucets in chrome
o One Glacier Bay, 1.28 GPF, high efficiency, single handle toilet
o One 4x8 custom shower with
▪ Full kerdi shower, floor to ceiling
▪ Two kerdi niches, 12x20 and 12x12
▪ One Kerdi Bench
▪ One Kerdi Curbless shower drain
▪ On Floor - Marble Mosaic Tile by Daltile
▪ On Walls – Ceramic bright white subway by Daltile
▪ Grout – White, nonshrink, epoxy grout
▪ Marble Mosaic in both niches
▪ One Glacier Bay, Dual head, wall mounted shower head in chrome
• 4 ½’’ Colonial base molding in Benjamin Moore white, eggshell finish • All walls painted in Benjamin Moore Silver satin, eggshell finish
• Custom cut glass shower doors per plan
• Custom closet shelving per plan
Having detailed breakouts for each part of the project limits delays, change orders, and allowances, by having the most accurate information possible. We will work with you to develop these breakouts and build your proposal to fit your specific project and budget.
The cost of cost-plus proposals
• We charge 1% of the proposed budget to complete our proposals.
• All cost-plus contracts have a builder's fee of 10% added to the cost of all bids selected by the client. Compared to 20 percent found on most fixed-price contracts.
• Payment is due for proposal after initial meeting.