Contracts for Custom Home Builds and Renovations.



Choosing a contract format can be confusing when considering a renovation or home build. Your relationship with your contractor should help guide you on which format you feel most comfortable with.

 

A Construction Contract is a signed agreement between a builder or renovator, and their client. The contract outlines all items specific to the project, such as scheduling, sub trade agreements, payment formats, risk assumption, etc.

 

There are generally 4 styles of contract used for renovations and custom home builds.

 


  • Fixed Price Contract (Quoted)

In this contract, there is one fixed price for all quoted items agreed upon, this would be paid to the contractor directly on a predetermined schedule. This style is ideal when there is a very clear scope of work and defined schedule. This contract may often include incentives for early completion, or penalties for late completion.

This contract places more risk on the contractor for project uncertainties and unforeseen costs, and they will generally include a percentage over and above in order to compensate for carrying that risk. This percentage is often unknown to the client.

 

  • Cost Plus Management Fee

In this contract, the homeowner pays all project related costs. The homeowner can either pay the contractor for project costs, or they can pay the vendors directly, the contractor will then be paid an agreed upon percentage of the costs by the homeowner as a management fee.

This contract leaves the risk of uncertainties and unforeseen costs with the homeowner, however the contractors profits and very clear to the owner, and if there are minimal unforeseen projects costs this may be the beast deal for the homeowner.

 

  • Fixed Price Management Fee

In this contract, the homeowner pays all projects related costs. The homeowner can either pay the contractor for project costs, or they can pay the vendors directly. The contractor will be paid a management fee separate to costs, generally that would be a fixed amount, paid monthly for management services.

 

  • Time and Material

Time and Material contracts are the preferred arrangement when scope of work and schedule is unclear. The contractor and homeowner will agree upon a defined hourly rate and payment structure.

Which Type of Decking Material Best Suits Your Needs?

Which Decking material best suits your needs?





It’s a question we hear often from our Calgary customers, and it’s a question with several answers.



The truth is, until you sit down and define what it is that you want in your deck, you will struggle with the decision between pressure treated lumber, decking membranes, cedar, composite decking or exterior grade hardwoods. To help you in making this decision, we have identified four decision-making criterias, and created a chart to reference as you make your decision:




  1. Budget




If budget is your primary concern, the answer to the decking material question is a simple one; brown pressure treated spruce. Pressure treated lumber is a significantly cheaper option than composite material, cedar, or any of the other exterior hardwoods. Not only will it save you money, it also holds up well to the Alberta elements. Using lumber that is not pressure treated in an exterior application is not advisable in any circumstance.




  1. Deck Maintenance




If you’re looking for the option with the lowest maintenance, composite decking will be your best friend for years to come. While it comes with a hefty price tag, once your composite decking is installed, you won’t have to think about it for the next 20 years. This is a stark contrast to wood decks, which generally require sanding and restaining on a periodic basis.




  1. Deck Aesthetics




If you’re looking for the sharpest looking deck on the block, the sky’s the limit when it comes to decking materials. Exterior grade hardwoods (ipe, mahogany, teak)  are beautiful, but come with a huge cost, especially if you have a large deck. Cedar is a great mid-priced option, that still gives your deck a beautiful natural look.




4)   Deck Durability




Composite decking, decking membranes and exterior grade hardwood are each great options if your priority is to build a durable deck that lasts. However, each has a trade off associated with it such as cost, aesthetics or maintenance.





Below is a chart to help visualize the pros and cons to the most popular choices in decking. Feel free to fire our team a message or give us a call if you have any questions!




Screen Shot 2019-01-23 at 10.42.11 AM.png

Ready to build the deck of your dreams? Contact us today for your free Deck Consultation and to find out more about how we can help you design your dream landscape.



rear deck.png