Lump-Sum Contracting
At Houzing Partners, we offer lump sum or fixed-price contracts to ensure cost certainty and transparency from the start.
This traditional procurement method establishes a single agreed-upon price for the entire project before construction begins. By accurately calculating costs and project scope upfront, we help homeowners avoid unexpected expenses, ensuring a seamless and stress-free building experience.
Advantages to Bunglow Owners
Lump sum contracts offer bungalow owners cost predictability and financial security. With a fixed price agreed upon upfront, homeowners can expect their project to stay within budget and often be completed faster, as contractors optimize resources and labor. Additionally, the contractor absorbs any cost overruns, minimizing financial risk for the owner. This structured approach also simplifies financing, as lenders prefer well-defined projects with clear cost estimates, making it easier for homeowners to secure funding.
Constructability & Budget Control
At Houzing Partners, our pre-construction experts apply industry best practices and insights to enhance design and construction efficiency. Through continuous value engineering, we optimize costs without compromising quality or design vision. Our strategic approach ensures seamless execution, budget control, and the best value for homeowners, delivering smarter, more efficient, and cost-effective construction solutions.
Managing Cost Fluctuations
Labor and material costs can vary throughout a project, but lump sum contracts help homeowners maintain budget certainty. Since these contracts lock in a fixed price, contractors bear the risk of rising costs but can also benefit if prices decrease. For longer projects, pricing fluctuations can be more significant, so contractors account for potential increases when estimating costs. At Houzing Partners, we mitigate these risks through strategic planning, supplier partnerships, and AI-driven cost analysis to ensure stability and value for homeowners.
Handling Optional Work & Provisional Costs
While lump sum contracts provide cost and scope certainty, they also allow for optional project work through provisional sums. These are predefined estimates for additional work that homeowners may choose to include later. If approved, the contract is adjusted accordingly. However, adding these changes later in the project can impact timelines and require formal change orders. At Houzing Partners, we ensure clear contract terms outlining how provisional sums are managed, minimizing disruptions and maintaining project efficiency.
