Fixed Price vs. Time & Materials Contracts: Why Fabish Contracting Chooses Fixed Price Contracts

First let's define our terms. The both are quite self explanatory. They are what you probably suspect. FP contracts offer a specific Scope of Work for an exact price. T&M contracts offer little to no scope of work with an hourly or daily rate for labor plus the cost of materials and maybe an additional markup of 10%.

Lots of clients are attracted to T&M contracts because the numbers are smaller. This seems attractive but involves serious risk from the client. This puts the responsibility on the homeowner, rather than the contractor, the supposed professional. In the T&M world, if little to no progress is made on the project, the client still pays for the "labor."

When spending tens of thousands of dollars on your home, you need to make sure the company you're working with has confidence in their process and in the numbers.

Here at Fabish Contracting we know how to complete the job and we know how much it will cost. There are no surprises for the client. That's our guarantee as industry pros. We know construction inside and out and we are able to produce for you with consistency. Our FP contracts contain a payment schedule. Sometimes three or ten different payments over the course of the project. They are scheduled according to certain milestones that correspond to the Scope of Work. They're progress payments.  

In the rare case where a project throws us a curve ball, your fixed priced stays the same, whereas a T&M contract, your cost just keeps going up and up like a nightmare that never ends.

When you choose Fabish Contracting for your project, you can rest assured knowing the price will remain the same. That's our promise to you!