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FIXED PRICE BUILDER CONTRACT SERVICE
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Fixed price is a common type of contract used in the industry. However, most of Landen’s clients prefer not to use this type of contract. We do offer a fixed price contract, usually for shorter duration projects. After going through the pros and cons of fixed price agreements, I think you will find out why most of our clients select a cost-plus or fixed fee project management formula, especially for longer duration construction projects. Of the three standard contract methods used, fixed price agreements really only have one advantage, the price is fixed as long as you plan to make zero changes.
A fixed price contract requires a very detailed set of specifications and plans that will be strictly followed and do not allow for any changes while under construction without first implementing a change order.
Fixed price contracts work well if you know exactly what you want and plan to make no changes after construction starts.
Another place where fixed price contracts work well is for shorter duration construction, like a kitchen replacement, where the entire project will most likely be done in 30 to 60 days. With shorter term construction turn-arounds, the contractor is more likely able to pre-fix their sub-contractors and pre-set material cost for the project.
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