How We Can Help You

One of the most important things to consider is settling on the correct builder most suited to you and the type of project you have. Choose a builder that specializes in your type of build. Ensure your builder is suited and well versed and experienced with what you are building.

When awaiting for different tenders to arrive, keep in mind that the final price is not all you should consider. Carefully consider the quality of material, the inclusions, final finishes and fixtures supplied. All these items combined may have a considerable influence on the outcome of a project. Basing each tender on a similar specification is very wise and will make your final decision easier. And if receiving monetary allowances for Prime Cost items (PC) and Provisional Sums (PS) ask each tenderer to allow a similar amount. That way you know you are receiving the same from each tender.

There are three main types of contracts commonly used

• Fixed Price (or Lump Sum)
• Cost Plus
• Management Fee

A Fixed Price type contract mostly ensures your final price and obtaining finance is far more achievable as lenders almost always require this to ensure the funds approved are sufficient in completing your project. The final price is your most important detail and this contract type is the closest way to achieve this. Any budget and cost overruns are the building contractors responsibility and the progress of the build runs smoother and more efficiently as the builder has full control, and with rising cost of trades and materials you are not effected by this. The clients input is reduced to mostly the enjoyable part of selecting colours and item decisions rather than the day to day construction activities.

A Cost Plus type contract is the cost of a project plus a builders margin fee, usually a percentage, in which the final contract sum cannot be determined as there is no fixed price, and lenders are reluctant to approve funds for this reason. This type of contract is recommended for projects that are far too difficult to quote. The owner and builder share administrative control, manage all accounts and selects trades and control the budget, keeping in mind that any budget and cost over runs become the sole responsibility of the owner.

Management Fee contracts run similar to a Cost Plus but with a fixed amount builders fee, and the owner is solely responsible for accounts, selects trades and controls the budget.

At Jocon Building, we specialise and highly recommend Fixed Price contracts. A competent builder should have the confidence and experience to accurately tender a fixed sum. Your build runs smoother, the sole risk of budget and control falls on the builder and builders usually obtain more competitive pricing. The owner will experience a much more enjoyable journey through their build and have more time for themselves.