Avoiding Hidden Costs with a Fixed Price Contract

Avoid Hidden Costs with a Fixed Price Contract


Worry-free builds

One of the greatest worries for a lot of clients when building their new dream home is unforeseen or ‘hidden’ costs.

You have already saved money for your deposit, you have been to the bank and you have calculated a set budget. Unforeseen cost can quickly cause this budget to blow out.

This can fortunately be avoided by using a Fixed Price Contract.

Stroud Homes Port Macquarie’s Fixed Price Contracts means that there are no ‘hidden’ extra costs throughout the build, as your specific home design has been quoted accurately by an estimator.

This allows customers to feel confident and comfortable in knowing that, when they sign the HIA Fixed Price Contract, the price will not alter throughout the build.

Stroud Homes offer FREE site evaluations

Preliminary Process & Testing

Stroud Homes Port Macquarie undertakes a preliminary investigation in order to get a better understanding of the land you’re building on, and what additional things may be required to construct the home.

The Preliminary Process and testing are completed before signing a contract. This includes:

  • contours (slope of your land)
  • soil type
  • wind ratings
  • and may uncover other issues to investigate (flood, acoustics, bush fire rating).

To find out more about your land, read our other helpful article on ‘Site Costs Explained‘.

Once these specific reports are completed, the team is able to provide clients with a full Fixed Price Contract for their build.

Most of the time Stroud’s preliminary agreement investigations provides the information required to enter a fixed priced contract with the customer. There can be the odd occasion where this is not possible and a different contract method is used, however this is not a common occurrence.


Fees, Charges and Prime Cost (PC) Sums

A PC Sum is an amount of money included in the contract to cover work and/or materials that have not been specifically detailed by the builder when providing the contract price.

Stroud Homes Port Macquarie tries to be as upfront and honest with clients as possible when it comes to fees and charges– so that there’s no ‘hidden’ extras when it comes to signing the contract.

The company quotes each individual home as per the plans and the standard inclusions. All PC sums in the quote are comparable with all quotes received.

Within a Stroud Homes quote, there is a section which outlines any changes that the client makes in addition or deletion of the plan.


Variations & Preliminary Agreement

Signing a Preliminary Agreement will not lock you in to anything. All of the documents from the process, which you have paid for, are yours to keep.

The only thing you will not be able to receive is the drafting. This is due to copyright reasons.

Once the Fixed Price Contract is signed and the colour selection has been completed with the independent consultant, the client has seven days to make any changes and or variations to the contract.

If you have any questions about Stroud Homes’ building process, don’t hesitate to get in contact with the team on 02 6516 2233 or contact them on their Facebook Page.

Joel Freeman
Joel Freeman

Ask us about our fixed price contracts