New West stands apart as the only Calgary Custom Home Builder to offer you the flexibility to choose how to structure your building contract.

Pick the path that supports your family’s preferences, circumstances, and priorities.

Path 1: Cost Plus Contract

A Cost Plus Contract entails covering the precise cost of materials, labour, and other expenses incurred during the construction process, along with an additional percentage for New West’s management fee. If you are detail oriented and prefer having a substantial degree of control, this option might be the ideal choice for you.

FEATURES:

  • Provides transparency regarding detailed project costs.
  • Overall project cost is determined upon project completion.
  • Presents greater ease in change orders.
  • Requires you to cover any additional change order costs and project cost overruns.
  • Reveals surplus savings if the project is completed under budget.

Path 2: Fixed Cost Contract

A Fixed Cost Contract entails agreeing to a pre-determined fixed price. If you prefer predictability and a clear-cut approach to managing your custom home budget, this option might be the ideal choice for you.

FEATURES:

  • Provides transparency regarding the total cost of the project.
  • Overall project cost is determined at the onset of the project.
  • Presents a formal process for change orders.
  • Requires you to cover any additional change order costs.
  • Allows you to plan your finances and avoid unexpected expenses.

Contract Path Comparison

COST PLUS CONTRACT FIXED COST CONTRACT
PAYMENT STRUCTURE Cost of materials, labour, and other expenses paid to New West to disburse to subcontractors and suppliers, plus a percentage management fee. One fixed price paid to New West for the entire project that includes materials, labour, and other expenses.
COST TRANSPARENCY Provides transparency with detailed expenditures. You may benefit from surplus savings if the project comes in under budget. Provides transparency regarding the total cost of the project.
CHANGE ORDER FLEXIBILITY Change orders can occur due to various reasons, such as evolving project requirements, unforeseen challenges, or your preferences. Changes can be implemented relatively smoothly as the contract structure allows flexibility. Design changes can lead to increased project costs, which you will have to cover. Change orders represent formal revisions to the project scope, schedule, or other contractual terms after the initial agreement. In Fixed Cost arrangements, change orders are more rigid, requiring careful negotiation. Any alterations to the agreed-upon scope may lead to additional costs or extensions in the project timeline. These change orders are meticulously documented to ensure mutual agreement on modifications and their associated costs.
FINANCIAL RISK MANAGEMENT The final project cost is not known until project completion. All project cost overruns are your responsibility to pay. The final project cost is determined and agreed upon at the onset. Any potential project cost overruns are effectively managed and mitigated by New West.
BUDGET MANAGEMENT We are responsible for managing the project budget and must provide a revised estimate for you to approve if there are change orders. We are responsible for managing the project budget and must provide a revised estimate for you to approve if there are change orders.
HOMEOWNER PROFILE Detail-oriented, prefers a high degree of control. Prefers a clear, concise budget, and values predictability.