How We Work

There are two primary ways that we approach and bid on projects, depending on the needs and interests of the client.

Fixed Bid

This is the most traditional method for bidding a construction project. The client is presented with a proposal that gives them a fixed price for the total project and provides project specifications or stated allowances for products or materials that are undecided at the time a proposal is presented. Some examples of items that you would receive an allowance for are: a vanity, counter tops and floor coverings. This method of bidding provides a potential customer with a fixed price for the job that will not change unless the scope of work changes. In the event of a change to the scope of work, a change order form is prepared and signed by the client that indicates they agree to the changes and any cost adjustment that may result. The purpose of this type of bid is to provide a price for the job up front that will match the cost of the finished product and is best suited for people who are operating on a fixed budget and need to know their exposure on a planned project.

Cost-plus or Open Book Bidding

Open book construction is when a fixed percentage is added to the total project cost. In this type of proposal, all of the chips are on the table. All costs pertaining to the project are shared with the client and are subject to change, everything from the framing labor down to the door knobs. It is a collaborative effort between the contractor and the client. Unlike a fixed bid contract, everything in a cost-plus percentage contract can receive multiple bids, whether it’s labor, supplies or materials. Much more time is spent bidding a project in this manner, as well as educating the client on the ins and outs of contracting. Additional time is necessary to not only explain the bid process, but the clients will also be involved in reviewing and analyzing bids. They become a significant decision maker in the planning and budgeting of the project. This process also requires a large amount of extra accounting and administrative work because everything is copied and shared with the client who in turn must agree and sign off on each aspect of the project as it progresses. The very nature of this type of process does not allow for the exact cost of any given project to be known upfront, but in turn, it puts a lot of control in the hands of the client.

We will be happy to discuss both options with you so you may make an informed decision as to which one best suits your individual needs.