- Building Site Accessibility for work crews and supplier deliveries during construction
- Construction Documents Quality: Simple “permit” drawings may not include enough information for Fixed-Price estimating.
- Building Site & Foundation Bearing Conditions: soil, rock or water-table
- Existing Building Condition: Unknown & un-foreseeable work requirements in renovations
- Project Size: Small projects may not justify a Fixed-Price. Extremely large projects may extend to a duration that makes material costs or labour availability unpredictable.
- Construction Schedule: Rushed delivery commonly implies increased costs and schedule risk.
CONSTRUCTION CONTRACTS TO BUILD YOUR NEW HOME OR COTTAGE IN MUSKOKA
We build high-quality homes, cottages, garages & boathouses under a variety of contract types.
WEIGHING THE COST VS. RISK TRADE-OFF: MUSKOKA CONSTRUCTION CONTRACTS
Classic Muskoka Homes delivers value to our clients with an adaptable set of construction contract alternatives that allow us to offer high-quality construction services under a variety of conditions for many different project types.
The type of construction contract that we offer for your project will depend on several considerations, including:
DEPOSITS & PAYMENTS UNDER OUR CONTRACTS
We require that you pay a small deposit (never exceeding 10% of total contract value) at the time that you sign our construction contract.
Progress payments made under our construction contracts become due only in proportion to the work progress that we have delivered to-date on your building project.
We offer a 5-year workmanship warranty for home & cottage builds that exceeds industry standards and the Tarion New Home Warranty for after-sales service and duration of coverage. Our contracts include manufacturer's warranties on the products and systems that we install.
BUILD WITH US
Experience transparency & accountability in building construction with Classic Muskoka Homes!
EMAILWe have had a great experience working with Ben on our cottage construction. Our project was a major reconstruction including a near complete demolition and rebuild.Oxtongue River
OUR “FIXED-PRICE” CONSTRUCTION CONTRACT
Classic Muskoka Homes has engaged nearly all of the projects that we have undertaken since our start in 2006 using a Fixed-Price (or “Lump Sum”) construction contract.
A Fixed-Price contract offers our clients the highest degree of construction cost predictability for their project.
Our standard form of Fixed-Price construction contract includes Cash Allowances to account for uncertain product or system specifications and to provide a realistic representation of total project cost.
Working within a Fixed-Price contract framework has required that we employ industry-leading technology and business procedures to allow us to serve our construction clients with confidence.
Choosing to work within a Fixed-Price has taught us important lessons in risk management.
Please Note: A fully-determined Fixed-Price cost for construction will only be offered if your construction documents provide full specification for the construction work of your building project.
CASH ALLOWANCES: FLEXIBILITY BUILT-IN TO OUR “FIXED-PRICE” CONTRACT
Our standard Fixed-Price construction contract includes a defined set of cash allowance items that provide you with the freedom to adjust minor design details during construction of your project.
We will work with you to deliver exactly what you want and we will only charge you the fair cost for the products supplied and work performed.
Where a cash allowance budget line item is not spent entirely, that savings is returned to you as a credit.
We will include Cash Allowances in our Fixed-Price contract in the case that your design decisions have not been finalized for items like finishes, fixtures, furnishings or appliances.
We will also include a Cash Allowance as a realistic estimate of the cost for work scope that is inherently uncertain.
For example:
- Subgrade conditions cannot be determined prior to excavation
- Renovation of a building where existing conditions cannot be determined prior to selective demolition work being undertaken
REQUEST A QUOTE
Contact us for a Fixed-Price Construction Cost for your building project.
QUOTEEvery job you have done (4 and counting) have been done on-time, on-budget and with quality of workmanship that is 100% top-notch. More importantly, the job site is kept clean while working, and when you're done, there is nothing for me to do... but sit back and enjoy!Muskoka River
OUR “COSTS-PLUS-MARK-UP” CONSTRUCTION CONTRACT
Classic Muskoka Homes occasionally performs construction work under a reimbursement-type Costs-plus-Markup contract where we might otherwise need to include an unreasonably large cost contingency in a Fixed-Price contract to allow for:
- travel/transport due to remote property locations
- deteriorated/unconventional building or structure conditions
- extremely high quality requirements
- uncertain or difficult building site conditions
The benefit to you in choosing a Costs-plus-Markup contract is that you pay only the actual cost of the work, including project & site management, labour, material, equipment, sub-contract & disposal costs, plus a mark-up that allows us to recover our business overhead costs.
The flexibility that this contract type offers also carries with it a significant risk of misaligned expectations between you and your builder. Costs-plus-Markup contracts leave the risk of cost over-runs in the hands of the Owner.
This is the key reason that we prefer to write a Fixed-Price construction contract for our building services.
FIXED-PRICE vs. COST-PLUS
Learn about the benefits & risks of various of construction contracts in our comparison.
COMPAREINSURANCE: RISK MANAGEMENT IN OUR CONSTRUCTION CONTRACT
COMMERCIAL GENERAL LIABILITY INSURANCE
Classic Muskoka Homes carries commercial general liability insurance coverage for the full scope of our business activities as a custom home builder.
- Building Demolition
- Excavation
- Home Building
Many building contractors are not even aware that they require separate coverage for all of these activities individually.
We will provide proof of insurance coverage prior to the start of work on your project, or upon written request.
BUILDER'S RISK INSURANCE
A home building or substantial renovation project can take an extended period of time to complete.
A variety of risks to the value of the work completed to-date on the project may present themselves.
Risks such as fire, storm damage, and theft could result in a significant financial loss should they occur during your construction project.
Classic Muskoka Homes recommends that homeowners contact their property insurance provider to add Builder's Risk Coverage to their property insurance policy for the full duration of construction activity.
