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Cost-Plus vs. Hard Bid Contracts: A Clear Comparison to Help You Make the Right Choice

Cost-Plus vs. Hard Bid Contracts: A Clear Comparison to Help You Make the Right Choice

 

When planning a home construction or remodeling project, choosing the right contract type is one of the most important decisions homeowners will face. Typically, the options come down to cost-plus vs. hard bid contracts. At Schaff Homes, Spokane’s trusted General Contractor Spokane, we specialize in hard bids because they provide clarity, accountability, and a streamlined construction experience. While cost-plus contracts may seem appealing at first glance, they can lead to financial uncertainty, which is why we take a different approach.

Let’s explore how the two options differ—and why hard bids offer a better path forward.

Key Differences Between Cost-Plus and Hard Bid Contracts

To begin with, it’s important to understand how each contract works.

Cost-Plus Contracts:

  • Homeowners pay for the actual costs of labor, materials, and other expenses, along with a contractor fee.
  • They allow flexibility for changes but often lack clear budget limits.
  • However, these contracts can leave room for financial surprises as costs increase throughout the project.

Hard Bid Contracts:

  • By contrast, a hard bid contract establishes a fixed price based on a detailed plan and scope of work.
  • This option provides predictability in both costs and timelines.
  • Moreover, it holds all parties accountable for adhering to the agreed terms, ensuring that projects stay on track.

Why Schaff Homes Avoids Cost-Plus Contracts

At Schaff Homes, we are not gearing toward cost-plus contracts for several key reasons. First and foremost, cost-plus is essentially an open checkbook, which leaves homeowners vulnerable to financial surprises. Additionally, while it allows flexibility, we believe most unknowns can be addressed upfront through proper planning.

For instance, we use advanced technology and resources to create highly detailed plans, reducing the number of unexpected issues that arise during construction. As a result, we are able to eliminate many of the unknowns that cost-plus contracts leave open-ended. Furthermore, securing contractor commitments early helps manage financial expectations, ensuring that everyone involved understands the budget and avoids surprises later on.

Why Schaff Homes Specializes in Hard Bids

Hard bid contracts are at the core of how we operate because they provide the structure needed to deliver exceptional results. Here’s why we believe in this approach:

  • Comprehensive Planning Eliminates Unknowns: By investing in detailed planning from the beginning, we can lock in pricing, scope, and timelines with confidence. This ensures that everyone starts the project on the same page.
  • Streamlined Efficiency: Because expectations are clear, construction progresses smoothly, reducing delays and confusion.
  • Financial Accountability: Hard bids require that all parties commit to a set price, scope, and timeline. This not only ensures alignment but also fosters trust and mutual respect throughout the process.
  • Shared Commitment: With a hard bid, all parties are contractually bound to the plan, which allows us to focus on driving the construction process efficiently and effectively.

Adapting When Changes Happen

Even though hard bid contracts create a clear framework, we understand that changes can arise during construction. Whether it’s a shift in material preferences or a design tweak, Schaff Homes handles these adjustments seamlessly. Through our transparent change order process, we work collaboratively with homeowners to address updates without disrupting the project.

The Schaff Homes Difference

As Spokane’s leading General Contractor Spokane, Schaff Homes stands out by prioritizing clarity, accountability, and craftsmanship. By focusing on hard bid contracts, we ensure that homeowners have clear expectations for budget, scope, and timelines. In addition, our plan-based approach eliminates many unknowns, while securing contractor commitments helps prevent surprises.

Moreover, we go beyond simply delivering results—we build lasting relationships through transparency and proactive problem-solving. By choosing Schaff Homes, homeowners experience the peace of mind that comes with a trusted partner who values their investment and vision.

Ready to Build with Confidence?

Schaff Homes delivers predictable, streamlined construction experiences through expert planning and transparent processes. Whether you’re building a custom home or planning a remodel, our hard bid contracts provide clarity and accountability, setting the foundation for a stress-free journey.

Click below to schedule your consultation. Your dream home is just a conversation away.