NOVEMBER 2025
THE VALUE OF THE FIXED-PRICE MODEL
When homeowners begin planning a custom home remodel or major home renovation, one question is usually front of mind: How much is this going to cost? At Crescent Builds, we’ve spent nearly two decades refining an approach that gives our clients clarity and confidence from the very beginning of their project. That approach is the fixed-price model—a structure built around transparency, thoughtful planning, and deep respect for both your investment and your peace of mind.This blog explores why we use a fixed-price model for our contracts, how it supports our design-build process, and what it means for clients seeking a trustworthy, experienced remodeling contractor in the Seattle area.
Why We Moved Away from Time & Materials
In the early years of Crescent Builds, like many growing firms, we worked primarily under time-and-material (T&M) or cost-plus contracts. This system allows contractors to bill clients for labor hours and material costs as they occur. While common in the industry, it places most of the risk, and much of the uncertainty, on the homeowner.
As we grew, our internal processes matured. We became highly organized on the front end of projects, focusing on thorough planning, complete drawings, defined specifications, and trade contractor pricing before we ever started construction. Through this detailed pre-production work, we repeatedly saw that our projects consistently landed on the budget we established during estimating.
It raised an important question: If we have the experience, organization, and systems to estimate accurately, why not provide clients with a clear fixed price from the beginning?
That shift was the turning point that led us to abandon T&M and fully embrace a fixed-price model a decade ago, providing our homeowners with far fewer surprises and far more control over their investment.
Understanding Contract Types: Why Fixed-Price Stands Out
In the construction and remodeling industry, you’ll typically see four contract structures:
Time & Materials (Cost-Plus)
Fixed Price
Guaranteed Maximum Price (GMP)
Hybrid or phased structures
T&M is often used by contractors whose processes are better suited to flexible, open‑ended billing structures. Because these agreements don’t define a firm scope or price upfront, the financial risk naturally shifts to the homeowner—whose financial risk may stem from missed or unclear scope, evolving design decisions, or inefficiencies that arise during the project.
A fixed-price contract, however, places accountability on the contractor in a way that brings clarity and stability to the entire project. It’s built on the foundation of a well‑coordinated team, thorough pre‑production planning, and a clearly defined scope, all of which help ensure that expectations are aligned before construction begins. For clients pursuing design-build remodeling—where design decisions, specifications, and construction details are fully integrated—this model becomes especially beneficial. It not only provides a more predictable financial framework but also fosters a sense of partnership and fairness, giving homeowners confidence that decisions are being made with their goals, budget, and long‑term vision in mind.
The Role of Pre-Production: The Foundation of Fixed-Price Contracts
Our fixed-price model is only possible because of our comprehensive pre-production and design process—an intentionally structured phase that transforms initial concepts into a fully coordinated, build-ready plan. This stage is where we eliminate assumptions, resolve uncertainties, and translate the vision into a detailed roadmap that everyone—clients, designers, production teams, and trade partners—can follow with confidence.
During pre-production, we:
Develop detailed architectural drawings that clarify layout, structure, and design intent
Establish thorough scopes of work to define responsibilities across all trades
Finalize specifications and selections so every material and product has been thoughtfully chosen
Gather trade contractor pricing rooted in accurate, coordinated documentation
Identify site-specific constraints, from access limitations to structural challenges
Assess structural, mechanical, and electrical requirements to ensure feasibility and compliance
But the value of this phase extends far beyond assembling documents. Pre-production is where we:
Uncover gaps early, before they become costly mid‑construction changes
Align expectations, ensuring clients understand what is included—and just as importantly, what isn’t
Validate design decisions against the project’s goals, budget, and constraints
Build a unified team, with designers, builders, and trade partners collaborating instead of working in silos
Because this process is performed under a fixed-fee development agreement, clients receive a predictable, transparent framework for all pre-construction work—mirroring the accountability they’ll experience during the build. By the time we enter into a fixed-price construction contract, every detail has been vetted, coordinated, and intentionally chosen. This means the client’s financial risk is not tied to unknowns we could have addressed earlier, but rather to the natural variables of remodeling—such as unforeseen conditions or client-driven scope changes—which are handled through our clear and structured change-order process.
For clients completing design-build home renovations, this level of pre‑production rigor offers reassurance: you know exactly what’s included, why it’s priced that way, and how the team will execute it—with no guesswork guiding decisions.
The “Discovery Phase”: Preparing for the Unexpected
One of the most important elements of remodel planning is recognizing that walls, floors, and ceilings often hold decades of stories—and not all of them are visible during design. Electrical issues, improper framing, hidden plumbing problems, rot, outdated wiring, or evidence of past DIY fixes can all surface once demolition begins.
We refer to this early stage of construction as the discovery phase—a dedicated window where our team takes the time to understand the home’s true conditions. During this phase, we evaluate what we uncover against the assumptions made during pre‑production, identify what requires attention, and communicate clearly with you about the implications, options, and next steps.
Instead of allowing unexpected findings to become stressful surprises, we approach them as a collaborative conversation. You receive timely information, transparent pricing, and clear reasoning behind each recommendation. Our goal is to ensure you remain informed and supported so that every decision—whether it’s addressing a structural concern or adjusting the design—is made confidently and with a full understanding of its impact.
Financial Predictability: A Major Client Benefit
A fixed-price contract provides more than transparency—it provides stability and financial clarity from the very beginning. Clients know:
What the total contract price is
When each payment is scheduled
How payments align with construction milestones
How to confidently plan their finances throughout the remodel
Because the cost is established upfront, we’re also able to build a clear, predictable payment schedule that mirrors the project’s production timeline. Clients don’t have to guess when invoices will arrive or how much they’ll be. Instead, each financial milestone is outlined in advance, giving homeowners the ability to plan and budget in advance.
Our payment schedule is tied directly to the work occurring onsite. If the project schedule is delayed for any reason, we adjust the remaining payments accordingly so the financial cost is spread out in a way that supports your planning and comfort—creating shared accountability and reinforcing our commitment to staying on track.
For large-scale design-build home remodels, where cash flow planning can significantly influence decision‑making, this structured and transparent payment approach also supports clients who may need to coordinate with financial institutions or secure renovation‑specific loans. Having a clearly defined total contract price before construction begins gives homeowners the ability to plan ahead confidently, work seamlessly with lenders, and ensure that funding aligns with the project’s timeline and financial milestones.
Addressing the Perception of “Inflated” Fixed Prices
Some homeowners wonder whether a fixed-price contract includes built‑in contingency to cover potential unknowns. It’s a completely understandable question—remodeling is complex, and every client wants to feel confident that the price they’re agreeing to is fair and rooted in real information.
In our process, the fixed price is built from detailed planning, collaboration, and clearly defined documentation—not inflated buffers. Because we invest so heavily in pre-production and partner closely with our trades, the price you receive reflects the true, thoughtfully scoped cost of your project.
And when changes do occur—as they naturally can in any remodel—our change‑order system ensures that adjustments are handled respectfully and fairly. In fact, clients frequently see credits when scope is reduced or refined, just as they approve additions when new work is added.
Ultimately, this approach allows clients to feel informed, supported, and genuinely cared for throughout the remodeling experience—one more reason our planning-first process leads to a smoother, more predictable custom home remodel.
How We Handle Changes: Flexibility Within a Fixed-Price Structured
Every construction project—especially remodels—naturally evolves as the work progresses. As walls are opened and materials are uncovered, we often learn more about the home’s condition and history. Clients may also gain new clarity as they see their space taking shape, inspiring refinements or adjustments along the way.
Instead of removing flexibility, a fixed-price contract helps guide it. It creates a clear, predictable structure so that any change—whether driven by discovery, design preference, or building code—is documented, explained, and fully approved before moving forward.
Changes are managed through our formal change order, which may be prompted by:
Unforeseen conditions revealed during demolition
Adjustments a client chooses to make as the design comes to life
Code compliance updates required by inspectors
Material upgrades or substitutions the client decides to pursue
This approach allows our clients to stay informed and in control while ensuring our team is aligned with their goals every step of the way. Nothing moves forward without clarity, transparency, and your full sign‑off.
For many older Seattle homes—where surprises behind walls are more common—this structured, communication‑driven process creates a smoother, more predictable remodeling experience that respects both your budget and your vision.
HOW FIXED-PRICE CONTRACTS SUPPORT YOUR EXPERIENCE
Choosing a fixed-price contract isn’t just about numbers—it’s about creating a remodeling experience grounded in clarity, partnership, and trust. When expectations are aligned from the beginning, clients feel more confident, the project flows more smoothly, and the entire team can focus on what matters most: bringing your vision to life.
If you’re considering a remodel and want a process that prioritizes transparency, thoughtful planning, and exceptional craftsmanship, we’d love to connect. Reach out to Crescent Builds to start a conversation about your upcoming project—we’re here to guide you every step of the way.