10/07/2026
Serval clients have asked us about COST➕versus fixed basis costs!?🏡 But inquiring minds beg to ask…what actually does this amount to and what’s the difference❓
A cost➕contract means that the builder takes on responsibility for everything related to the build. That includes ordering, receiving, inspecting, coordinating, and troubleshooting—regardless of whether it’s lumber, appliances, or tile. It’s not just about placing an order; it’s about ensuring those items arrive on time, undamaged, installed correctly, and integrated into the overall build. All along meeting stringent inspection and compliance requirements by municipalities, POA’s, and with complete transparency to the client.
Risk and responsibility come with the 20% fee, or whatever the buyer and seller agree upon. If something shows up late or damaged, the builder has to chase down replacements, reschedule trades, and potentially cover delays. They’re also responsible for making sure those appliances fit into the overall build (cabinetry adjustments, electrical, venting, etc.). If something goes wrong, the liability is on the builder—not the homeowner or the designer. This is why builders prefer to control orders. Builders want to control as much as possible; because that’s how they guarantee quality, efficiency, and accountability. It’s a huge cost savings because we are able to obtain our Contractor pricing and in some cases we get a Military Discount of 10% with suppliers like Lowes, Home Depot. In some cases we are fortunate to get these same discounts from our local network Tradesmen such as: Steve Meredith Plumbing, Vasquez Construction, Tahran Electric and Johnny Mauldin HVAC of Conway, AR. 🙏🇺🇸These savings are then passed right on to the client.
When multiple people start ordering materials (designer, homeowner, etc.), things slip through the cracks—wrong specs, late deliveries, missing parts. Then guess who’s stuck fixing it? The builder. So, it’s crucial in delivering a smooth experience and especially about managing chaos.
Your designer’s role vs. the builder’s role. Well, a designer can pick out finishes and make recommendations, but ex*****on (ordering, delivery, installation) is part of the builder’s job in a cost-plus setup. If you start splitting who orders what, you create gray areas in responsibility—who deals with a wrong order or a backordered fixture? The builder? The designer? You? That’s why most builders will be running all purchases through their system.
Are appliances usually included in cost-plus? Yes, almost always. Anything that affects construction, scheduling, or installation is typically run through the builder. Some builders will allow homeowners to purchase appliances separately if they coordinate everything themselves, but that means you’re on the hook for issues, delays, and ensuring they fit within the build schedule.
At B*H, we often build on a fixed cost basis, as described below:
✅ The builder is 100% liable for any unforeseen costs. But if we keep our quality high and still control our overall costs and margins - it may lead to additional savings/profits to the bottom line.
✅ Results in more flexibility to focus on TCB and building the clients dream home.🏠🔨
✅Also results in less input from the homeowner, a bit less flexibility on choices and change orders, open books/transparency and more ADMIN, etc.
Please share your thoughts and give us a call for a free tour. We currently have two homes in process at 18 Vigoroso Lane and 71 Sergio Way.🇺🇸
