ALL BUILDERS ARE NOT THE SAME
Every builder says they're the best. We know you're sick of it. Can't a company just be real with me? Get ready for a refreshing experience at Widesky Homes. Of course we think we build a superior custom home or renovation. Let us show you how our 12 years of experience allows us to achieve better quality, faster construction, affordable luxury, all while making lifelong clients.
COST PLUS
If you’re considering building a new home , or renovating your existing one, you’ve probably spoken with companies who assured you that the best way to proceed is by setting up a “Cost Plus” contract. Basically, this is a contract where the customer pays only the cost of the materials and trades , and the builder takes a percentage of the total build cost as their fee. The obvious advantage is that all costing is transparent, and the homeowner maintains control over the budget. For the builder, there is no temptation to cut corners on any portion of the build if costs actually exceed initial estimates. On the surface, it seems like a wonderful option and in many cases, that sales pitch is true!
FIXED PRICE
What about the other builder who tries to assure you that the best way to proceed is with a “Fixed Price” contract? In this scenario, the homeowner will only pay the price that is contracted up front before the build begins. It is likely to be explained that this option will protect you from cost overages, and that any mistakes made during the build will be absorbed by the builder. So unlike the auto garage that just happens to find some “extra” charges when changing the oil, a fixed pricing contract will ensure you get the services and build you agreed to for a predetermined price. The suggestion is that this can take a lot of stress out of the building experience, and in many cases, this is also true!
I'm Confused, Which Is Best?
So which option is best for you? Most people can see that there are advantages to either option, but also rightly conclude that there is a degree of secretiveness in both. How can both scenarios supposedly be best for the homeowner? What is it that’s being left out or skimmed over? Are you left wondering which way to go, who to proceed with, and which choice will allow for the best experience with the least amount of stress?
Widesky Homes Approach
Widesky Homes has taken a radically different approach in an effort to simplify the Home Building and Home Renovation experience. We understand that your home is often your biggest investment, so whether you’re spending $100,000 or $2,000,000, each dollar was earned by you, and you want to make it go as far as possible.
Flexibility to Choose
The truth is that there are many home builders and renovators in the Calgary area. However, Widesky Homes is one of a very few, if any, that gives you the freedom to choose between cost plus or fixed pricing. The reality is that circumstances differ for each client, and so we want to work with you to help discover the option that’s best for your unique situation. As you will see there are a number of advantages and disadvantages for the client , and also for the builder. Widesky Homes believes the foundation to any great relationship is trust, and we try to earn that trust by being upfront and honest from the very first contact. We’re here to help you navigate through the often difficult and confusing world of building and renovation. Together, as partners, we will help you to discover the best option for your situation.
Fixed Price/Lump Sum
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Homeowner
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Pro
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Con
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Defined scope of work |
Takes time. difficult to start in short order
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Defined deadline |
Could cut corners to make timeline
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Defined payment Schedule |
larger payments
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Small involvement |
Lack of Flexibility
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"Theory" of lower quality if costs overrun
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Builder
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Pro
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Con
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Higher Markup |
Could lose money of incorrect estimates |
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Don't have to accommodate changes
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Less accountability to homeowner
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Less time involved to manage
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Cost Plus / Time & Materials
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Homeowner
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Pro
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Con
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Transparency
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Changing budget
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“Theory” of higher quality
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Everything has a cost
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Typically costs less than fixed
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Uncertainty of final cost
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Can start without a detailed plan
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If inefficient, builder is paid for time
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Contractor doesn't need to ”pad” the total
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Builder may underbid to get contract
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Monthly payments
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Invoicing extends a month or two past completion
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Lower mark up
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Builder
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Pro
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Con
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Not as critical to know pricelists
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Monthly reviews of adjusted budget
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No change orders as progress occurs
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Can add stress to the relationship
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No incentive to control costs
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Bid low to win contract
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Increase cost for "discoveries" once everything is torn apart |
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