Why a fixed priced build is much safer in this current climate.

When compared to contract types, such as the cost-plus or ‘time and materials’, in which the contractor gets reimbursed regularly for all costs incurred during construction in addition to an additional fee, this method stands in stark contrast.

In the current economic climate, where the prices of building materials and labour can fluctuate significantly due to various factors such as supply chain issues, inflation, and global events, a fixed price build can provide a level of safety and security to both the owner and the contractor. By coming to an agreement on a fixed price for the project, the owner can rest easy generally knowing the overall cost of the project

In addition, a build with a fixed price can assist reduce the risks and uncertainties associated with a project. Because the price of the contract is predetermined, the contractor has a stronger motivation to control costs throughout the duration of the construction process. This can result in a more effective use of resources and a more favourable conclusion for the owner.

It is necessary to have a comprehensive knowledge of the requirements of the project, a work scope that is clearly outlined, and cautious management of any potential risks or uncertainties. It is also possible that a longer lead time will be required for procurement and planning in order to guarantee that the original contract price appropriately accounts for all of the associated costs.

In nutshell, a construction project with a fixed price can offer peace of mind. However, in order to guarantee a positive end, it is necessary to engage in meticulous planning and design.