Fixed-Price vs. Cost-Plus: Know Before Building Your Custom Home

When planning a custom home, one of the biggest decisions you'll make is how the project will be priced. At Cedar Pointe Homes, we believe that pricing isn't just a number; it's about trust, transparency, and making your dream home a reality without stress or surprise expenses.

Below, we’ll break down the key differences between Fixed-Price and Cost-Plus contracts and explain why we exclusively operate as a Fixed-Price builder.

What Is a Fixed-Price Contract?

A Fixed-Price contract outlines a single, agreed-upon cost for the entire construction of your home before ground is ever broken. This model requires significant pre-construction planning to ensure every detail from foundation to finishes is accounted for.

Key Benefits

• Budget Clarity: You know the full cost of your home upfront, providing peace of mind and eliminating financial guesswork.
  
  
• Accountability: The builder assumes responsibility for staying within budget, driving precision and discipline throughout the project.
  
  
• Fewer Surprises: Comprehensive planning during pre-construction helps prevent delays, overruns, and scope changes down the line.

What Is a Cost-Plus Contract?

With a Cost-Plus model, the homeowner pays for the actual cost of labor and materials, plus a predetermined percentage as the builder’s fee. While this may seem more flexible, it often opens the door to cost overruns, shifting timelines, and unclear expectations.

Potential Risks

• Costs can escalate quickly as the project progresses
  
  
• Minimal incentive for cost control
  
  
• Less detailed pre-construction planning
  
  
• Limited transparency around total investment
  
  

In our experience, Cost-Plus pricing often reflects a lack of preparation, leaving homeowners vulnerable to unexpected changes.

Why Cedar Pointe Operates on Fixed Pricing

We believe luxury is defined by both craftsmanship and experience. By operating on a Fixed-Price model, we’re able to deliver:

• Predictability: Clients can move forward with confidence, knowing their investment is protected.
  
  
• Precision: Every project goes through a robust pre-construction process, where budgets, scopes, and timelines are carefully mapped out.
  
  
• Transparency: We clearly define allowances for personalized selections like tile, cabinetry, and lighting. If your selections exceed the allowance, you cover the difference. If they come in under, you receive a credit, simple and straightforward.
  
  

This pricing model ensures the home you envision is the home we deliver, on time and on budget.

Bringing Vision to Life: A Case in Point

Our recent Desert Sapphire project exemplifies the value of Fixed-Price building. This 5,292 sq ft custom home was brought to life through thoughtful planning, seamless execution, and a fixed-price approach that empowered the client to make confident decisions without fear of budget drift. 

The First Step: Pre-Construction

Before any agreement is signed, we guide you through a comprehensive pre-construction phase. This process includes site evaluation, plan development, team curation, budgeting, and schedule creation, all tailored to your unique vision.

Build With Confidence

At Cedar Pointe Homes, we don’t just build homes, we build trust. Our Fixed-Price model is designed to give you clarity, protection, and the confidence that your home will be delivered exactly as promised.

To explore what your own custom home journey could look like, contact us or view our portfolio of completed luxury builds in Southern Utah.