Custom Homes Bend Oregon
Office : 541-385-7700

Fixed Bid Home Construction Pricing

Fixed Bid Home Construction Pricing

Fixed bid home construction pricing is where you know exactly what it will cost build a home as specified for X amount of dollars by this date. In theory you get what you want, the contractor gets paid what they want and there are no surprises for either party.

Fixed Bid is the contract style that most people think that they understand.  It seems pretty straight forward.  Usually,two or more General Contractors are given home plans designed by an Architect, Residential Designer (RD) or even the Homeowner themselves. The General comes back with a flat price and states that the total cost of the job will not exceed $X. Seems pretty simple.

Most Homeowners feel that they are clear with the plans and/or scope of work so they can feel comfortable selecting the Contractor who comes in with the lowest bid. If indeed the plans are extremely detailed and there are very few or no changes to the scope of work, this can be a good option for those folks that do not want to be watching their sausage made.

Advantages: The more straight forward the project, the easier it is to contract for a fixed bid. Plus, a contractor will be looking for the best deal on all materials to keep their bid competitive. Trade contractors, such as electricians, HVAC installers and plumbers, use fixed bids. The common contract clause is “per the plans, in place and to code.” Once it passes inspection, the trade contractor expects to be paid.