Cost-Plus Builder Contract
At Walnut Ridge Construction, transparency isn’t just a buzzword — it’s the foundation of how we do business. Our Cost-Plus Builder Contract gives homeowners complete clarity, flexibility, and control throughout every phase of construction. You’ll see every invoice, vendor estimate, and labor charge — ensuring your investment is protected and your vision stays on track.
What Is a Cost-Plus Builder Contract?
A cost-plus contract is a construction agreement where you, the homeowner, pay the actual cost of materials, labor, and subcontractors, plus a clearly defined builder’s fee. There are no hidden markups, padded bids, or vague “package pricing.” You know exactly what you’re paying for — line by line.
The Structure:
Cost: Actual expenses for labor, materials, and trade partners
Plus: A transparent, pre-agreed builder’s fee (flat or percentage)
Result: Complete visibility into every project cost
Why We Use Cost-Plus Contracts
Most builders use fixed-price contracts to protect their margins — not the homeowner. At Walnut Ridge Construction, we believe you deserve honesty and flexibility, not inflated numbers built around “what-ifs.”
Advantages of Our Cost-Plus Contract:
Full transparency from start to finish
No surprise upcharges or hidden costs
Freedom to adjust materials and finishes anytime
Real-time access to invoices and budgets
Builder-direct communication on every decision
What’s Included in the Contract
Our Cost-Plus Builder Contract is designed to be clear, detailed, and fair to both parties. It outlines expectations, schedules, and financial responsibilities so everyone knows exactly what to expect.
Typical Sections Include:
Project overview and scope of work
Estimated construction timeline
Budget framework and allowances
Draw schedule and payment structure
Builder’s fee and cost tracking method
Warranty and service provisions
Termination, delays, and change order terms
We review every clause with you before signing, so you understand how the process works — no fine print, no surprises.
Ready to Build with Complete Transparency?
Our Cost-Plus Builder Contract is designed to eliminate surprises and create a truly collaborative partnership between builder and homeowner. Let’s start your project with honesty, clarity, and confidence — from the first line item to the final walkthrough.
How Builder Fees Work
Your builder’s fee is a fixed percentage or agreed-upon flat fee that covers project management, scheduling, supervision, and communication. This ensures we’re compensated fairly for managing the build — while you maintain full visibility into all direct costs.
Our Fees Cover:
Project coordination and scheduling
Trade and vendor management
Site supervision and inspections
Client updates and reporting
Post-build service and warranty support
Change Orders and Flexibility
We know plans evolve — that’s why we built flexibility into our contract. Want to upgrade your flooring or add a screened porch halfway through construction? No problem. You’ll see the actual cost difference before approving any change.
Change Order Process:
You request the modification.
We estimate the true additional cost.
You approve (or decline) the change.
It’s added to your transparent cost ledger.
Protecting the Homeowner’s Investment
Transparency builds trust — and trust protects your investment. Our contract structure ensures you’re never paying for hidden margins or inflated allowances. You get builder-level insight into your home’s costs and decisions, giving you both confidence and control.
You’ll Appreciate:
Verified vendor invoices
Open communication
Shared access to budgets
Honest pricing on all upgrades
Testimonials
Tellico Village
“We interviewed several builders before choosing Walnut Ridge, but what sold us was their open-book pricing and constant communication. We saw every invoice and cost, and there were zero surprises. The process was honest and smooth from start to finish.”
Sarah & Mark L.
Rarity Bay
“From our very first meeting, we knew we were in good hands. Kenny and his team took the time to understand our needs, our land, and our budget. Our home fits our lot perfectly and turned out even better than we imagined.”
Tom & Rachel B.
Loudon County
“The craftsmanship is outstanding. Every trim line, cabinet, and stone detail feels intentional. It’s clear Walnut Ridge Construction takes pride in every home they build.”
Greg & Melissa K.
WindRiver Community
“We were building from Florida, and Kenny kept us updated with progress photos, budget reports, and quick responses. We never felt out of the loop, even from hundreds of miles away.”
David & Karen T.
Monroe County
“We’ve built before, and this was by far the best experience. The cost-plus contract gave us peace of mind, and the workmanship exceeded expectations. We would recommend Walnut Ridge to anyone building in Tennessee.”
Mark & Sheila R.
Blount County
“I've had the pleasure of knowing the general contractor of Walnut Ridge Construction, Kenny Schmidt, for over 20 years. So, when it came time to build a house, there's only one person I trusted to take care of me. You'll never meet a more honest person in your life.”
David M. & Melanie W.
Frequently Asked Questions
What is a cost-plus builder contract?
A cost-plus contract means you pay the actual cost of labor, materials, and subcontractors plus a transparent builder’s fee with no hidden markups.
Why does Walnut Ridge Construction use cost-plus pricing?
It ensures homeowners have full visibility into every project cost and allows for flexibility with materials and design decisions.
How is the builder fee determined?
We agree on a flat or percentage-based builder’s fee upfront. It covers project management, scheduling, supervision, and communication.
Can I make changes during construction?
Yes. You can make changes anytime. Each modification is transparently priced before approval and tracked in your open cost ledger.
How is this different from a fixed-price contract?
Fixed-price contracts hide costs and limit flexibility. Our cost-plus model gives you complete transparency and control throughout the project.
East Tennessee’s trusted builder for custom homes, additions, and renovations crafted with care and a foundation of honesty, transparency, and integrity. Trust your home with Walnut Ridge Construction.
Contact Us
Walnut Ridge Construction
General Contractor
TN General Contractor Lic. #80735
1916 Highway 411
Vonore, TN 37885
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