Contracts and permits: fixed price or cost-plus explained
October 17, 2026
A build contract can look intimidating, but it comes down to two questions: how the price is set, and how changes are handled. Here is how we answer both.
Two ways to price a build
We contract either fixed price or cost-plus, depending on the job. We will tell you which fits yours, and why.
Fixed price
You know the number before we start. Anything you have not picked yet, like flooring or lighting, gets an allowance. Changes get priced and signed off before we do them. Fixed price suits a job where the plan is settled and the site is well understood.
Cost-plus
You pay what the job actually costs plus our fee, and you see every invoice. It is a good fit when the plan is still moving or the site has unknowns, like rock, groundwater or a long driveway that is hard to price in advance.
Deposits, payments and changes
Either way, there is a deposit to get on the schedule, payments as the work gets done, and every change in writing. A change that is not in writing is a misunderstanding waiting to happen, so we do not start it until it is.
Permits and engineering
A home needs permits before work starts, and the requirements differ between counties and towns. The engineer's plans set the structural requirements, and we build to them. Ask us early which permits your lot will need, because it can affect the order of the work.
Read the whole contract
Take your time with it and ask about anything that is unclear. The contract holds the full terms, including the warranty. A good builder expects questions.