There are two ways builders charge: a fixed price agreed before work starts, or cost-plus — actual costs plus a fee. Both are legitimate. Only one of them puts the estimating risk on the professional. Here's how to choose with your eyes open.
Where the risk sits
| Fixed price | Cost-plus | |
|---|---|---|
| Who carries overrun risk | The builder | You |
| Price known before start | Yes — line-item contract | No — estimate only |
| Transparency of costs | In the scope, up front | In the invoices, after |
| Change flexibility | Via written change orders | Continuous (and costly) |
| Best for | Defined residential scopes | Genuinely undefined scopes |
| Discipline required | Complete design first | Iron-willed cost tracking |
What the difference costs
How a fixed price stays fixed
You can't fix a price for a house that isn't drawn. Design-build sequences this correctly by default.
Every allowance named and numbered. You compare scopes between builders, never bottom lines.
Cost and schedule impact stated and signed before work proceeds. You stay in control of the number.
Payments tied to completed, inspectable work — foundation, frame, lock-up, finish — never to the calendar.
We'll walk you through an actual Armacan fixed-price contract structure at a free consultation — no obligation, no mystery.
✱ Representative planning figures for Metro Vancouver, mid-2026 — assembled from municipal permitting schedules, the BC Energy Step Code framework and Armacan project records. Every lot and scope is different: treat these as orientation, not a quote, and confirm against your property in a free consultation.
