Well, that’s exactly what you’re doing when you sign a “Cost-Plus-Fee” (CPF) or “Cost-Plus” Contract for your custom Construction Project! Left unchecked, you will overpay for the work. Not you “might” overpay, you will. But you don’t have to anymore. Naples Custom Home Cost Consulting (NCHCC) is that “check”. We offer expert Owner’s Representative Construction Services to Clients anywhere in FL…and beyond.

So, you’re considering a proposal from a Builder for a project. How do you know the pricing is accurate? Maybe you have multiple proposals that vary considerably. Why is that? How do you go about comparing them?

Most custom construction projects are built using CPF contracts. CPFs are used because there are many unknowns that preclude Builders from determining a total, hard cost for the work, so they can’t offer a Fixed-Price. With a CPF, the Builder agrees to construct the project for a certain, lower Fee (usually a percentage of the actual, total costs) than what they would typically charge. In exchange for this concession, the Owner agrees to take on the cost-risk that the Builder normally would.

The Owner, then, is responsible for all of the Project’s costs – no matter what they end up being or how they come to pass.

Each Builder has the same motive – to be awarded the Contract. They presume that price will be the Owner’s deciding factor. Because of unknowns on custom jobs, each Builder is afforded considerable leeway when compiling their numbers. Therein lies the Owner’s problem:

CPFs not only empower Builders to provide pricing that’s incomplete (too low), they actually incentivize them to! Why risk losing your job by providing you a complete, accurate Cost Estimate that will be higher than what you’ll get from competitors? Since the cost-risk lies with the Owner, Builders can’t be held accountable to their Estimates. Further, with CPFs, Builders usually have little-to-no formal obligation to control the Owner’s costs. And why would they try when, in fact, they make more money the higher the costs are! Indeed, the more expensive the job, the higher the percentage of money Owners will unnecessarily overpay gets!

So, how can you know how legitimate any Estimate you’re considering at this point is? The answer =you can’t. And that is why, when you contract for a custom construction project, you are buying something without knowing how much it costs!   

 This is when you need to bring in a home building consultant, like NCHCC! How does NCHCC control construction costs and save you money? We perform the diligence that Builders don’t (because they don’t have to). They are reactive, we are proactive. We apply unique insights acquired over 25+ years of firsthand construction experience in FL to provide diligent Owner’s Rep services to Clients that have, or are considering, a project. As Cost drives the entire process (see Video), we’ve

developed – and now offer – a complete slate of Cost Management-specific services (see inset pic) that few other home building consultants do. Our specialty? Reconciling the Contracts and Estimates that Builders propose so that you avoid cost pitfalls and are empowered to make well-informed decisions.

Already signed a CPF with a Builder? Project already underway? We can be brought on to any Project, at any time just about anywhere. It’s never too late to gain – and maintain – control of your Project’s costs.

Investor that has, or is considering, a Spec home or renovation of an existing property? At NCHCC, we make you money by saving you money! By adding value to the job, we increase the equity in it and your ROI.

The goal is always the same: build the Project for the lowest cost, as quickly as possible and without sacrificing quality. At NCHCC, we strive to strike the optimal balance between Cost, Duration and Quality on every Project, without undermining Builders. Let us solve the equation on yours.

Know where you stand before you sign a Contract or take a stand if you already have. The sooner you call NCHCC, the better!

In Florida, property owners seeking to build are stymied by ever-increasing construction costs in an unresponsive construction market. Builders only make things tougher by offering one-sided contracts with high fees added on top of unreliable cost estimates that always prove to be too low. How, then, can owners push back and make their projects more viable and equitable?

Simple: by significantly lowering those construction costs. And the secret to doing that…is being an Owner-Builder.

Few people know about this legitimate option, so let’s start there. What is Owner-Builder construction? Property owners have the right to remodel or construct a home that they will live in without having to hire an overly expensive builder to do it. An Owner-Builder takes advantage of this approach to maximize overall construction cost savings. For most, this represents a significant amount of money—money that could be put to better use. The savings might be used to help offset the property’s purchase price or pay for upgrades to the project, thus increasing their home equity as well.

However, with reward comes risk. Owner-Builders enjoy complete control of the project, but they must legally take on all of the risks and responsibilities that a builder typically would. Maybe they have some experience in the construction industry. Maybe they just enjoy the process. Maybe they’ve simply done the math and concluded that the benefits outweigh the risks. The value is there. Indeed, the more expensive the project, the more substantial the potential cost savings.

Still, Owner-Builder construction is about more than just meeting legal and insurance requirements. Owner-Builders are tasked with managing the entire construction process. To be successful, they need help from someone with ethics, experience, contacts, and clout. Someone to protect them by mitigating the risks and helping handle their many, varied responsibilities.

In short, Owner-Builders need someone they can TRUST, like Naples Custom Home Cost Consulting (NCHCC).

We build that TRUST by advocating for, and presenting clients with, the many choices they have, advising them on the differences between those choices, and guiding them through the entire construction process to see a project built that meets THEIR needs—whatever they may be.

We offer a complete set of services to assist—help that other builders don’t offer. We can be hired as an Owner’s Construction Manager and, if they choose, perform nearly all of the same functions that a full-service builder would, including managing the actual construction of the project for them. To help, we can call on a deep group of industry-wide contacts—across ALL price points—developed over 25 years in SWFL: a deeper “bench” than any other firms have.

Owner-Builder construction offers owners the greatest potential upside. If they have the fortitude, NCHCC can help them realize that potential.