Contracts and Documents
Over the years our construction agreement (contract between builder and owner) has evolved with an intent to keep if fair and avoid conflict. Some of customers have an attorney review everything and honestly some of them problem don't even read it.
Contract Types
  • Cost-Plus with percentage-based fee
  • Cost-Plus with a fixed fee
  • Cost-Plus with a fixed fee and shared savings or cost overage (our favorite)
  • Cost-Plus with a guaranteed maximum price
  • Fixed Bid Lump Sum
  • Fixed Bid Lump Sum with allowances
Basically the differences between the contracts all relate to which party assumes the risk of cost overruns. When the owner is willing to assume some risk, we can reduce our fee. In all cases we want to provide a highly-detailed estimate. Ambiguities and oversights are the main cause of cost surprises. As stated in other sections, accurate and complete construction documents and work packages, are the key to a good estimate and a contract without surprises.

Contract Clauses
Every contract is comprised of numerous clauses; some more important than others. One of the keys reducing risk is understanding the implications of each clause. We prefer that our customers take an active role in understanding the role of each party in the relationship. Reviewing the contract on a clause-by-clause basis is a helpful approach.

We have actually built homes for several attorneys and happy to say that they went well, we believe because they understood their role in the relationship. We are open to discussions and our contract and other documents related to the completion of your project. Please let us know if you have any questions.

Selections and Decisions
Another document that we are going to want you to sign is our form, Making Selections. Nothing has more impact on our ability to perform as your builder. The process of choosing colors, products and materials for you have, has direct tie-in to our construction schedule. Delays in placing orders causes a ripple effect that can delay construction or make it much more difficult to complete on time. Consider that one hundred percent (100%) of the homes we have finished on schedule or ahead of schedule, had an organized and decisive owner.

Open Book Project Management
We have an “open book” project management system and use a separate checking account for every home we build. There are no secrets or hidden pricing. You have access to every document and can even see every invoice and every payment made for your home. This process assures that there’s no co-mingling of funds – an important issue in this lean economy.

Construction Management

Florida and the Gulf Coast have climate and environmental conditions that are unique from anywhere else in the United States. With energy efficiency and a new green awareness on the minds of many in the industry, building systems and construction techniques are evolving quickly. provides construction and green management services and resources to businesses and consumers that want to optimize the residential construction process.

Note: Most of the forms and information on our site are available to view if you provide us with an email address. We'd like to send you our monthly newsletter with information and resources about new homes and residential construction. Thanks for your interest in Groninger Custom Homes.