Our Fee Structure

While it's often touted as the safest option, a fixed-price contract for custom homebuilding can come with its own set of pitfalls. One major concern is that even the most comprehensive contracts may include loopholes that allow the builder to raise the price for unforeseen reasons. This can leave homeowners in a precarious position, facing unexpected costs and financial strain.  
 

Why traditional fixed-price contracts may be risky:

• Hidden clauses and caveats: Many fixed-price contracts contain clauses that allow the builder to raise the price for a variety of reasons, even if those reasons were not foreseen in the original contract. This can lead to unexpected cost overruns and financial strain for homeowners.

• Limited transparency: With fixed-price contracts, homeowners often have limited access to the builder's cost breakdowns and invoices. This makes it difficult to verify that they are being charged fair market rates and that the builder is not padding their profits.

• Lack of accountability: Fixed-price contracts can incentivize builders to cut corners or use cheaper materials to meet their contractual obligations. This can compromise the quality of the home and lead to long-term problems.
   

At Site Forge, we believe that a cost-plus approach offers a more transparent and equitable solution for custom homebuyers. With this model, we openly disclose all quotes and invoices, ensuring that homeowners have complete visibility into the cost of their project. This transparency eliminates any concerns about hidden fees or unexpected price increases.

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How our cost-plus approach ensures transparency and predictability:

• Full transparency: We provide homeowners with complete transparency into our pricing, allowing them to see the initial quotes from subcontractors and vendors, as well as the actual invoices when they are received. This ensures that homeowners are always aware of the true cost of their home.

• Fixed price cap: We set a maximum price for the home upfront, and homeowners will never pay more than this agreed-upon amount, even if there are unforeseen cost increases. This provides peace of mind and reduces the risk of financial surprises.

• Industry-first de-escalation clause: If market conditions change and material or labor costs go down, we will pass those savings along to our homeowners. This means that homeowners are never subjected to price increases, even if the market fluctuates.
   

The best of both worlds:

Our cost-plus approach offers the best of both worlds: the security of a fixed-price cap and the potential for cost savings if market conditions are favorable. This ensures that our homeowners are always protected from unexpected expenses while also benefiting from the flexibility of our approach.

Why we choose to use a cost-plus approach:

We believe that a cost-plus approach is the most ethical and transparent way to build custom homes. It allows us to build relationships of trust with our homeowners, ensuring that they are always informed and confident in the process. We are committed to providing the highest quality homes possible, and our cost-plus approach allows us to do this while maintaining open communication and transparency with our clients.
 

We invite you to learn more about our cost-plus approach and how it can benefit you. We are confident that you will find our approach to be both fair and reasonable, ensuring that you get the best possible value for your custom home investment.

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Here's a Simplified Breakdown:

Soft Costs: Paid By Client Directly to Consultant (No Mark Up)

Hard Costs: Guaranteed Maximum Price with Descalation (30-35% Cost Plus Fee)

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Dont Know what Soft and Hard Costs are? Here's a video that breaks it down.

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Simplified Example:

$20,000 Site Engineering = $20,000 paid by Client

$50,000 Architectural Fee = $0 paid by Client

$1M Hard Construction Cost = $1.3M - $1.35M paid by Client

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