Pricing Methods
Mark prides himself in being thorough. Upon contacting Timber Creek Construction, a time will be scheduled to come look at your project. After discussing what it is you want to accomplish and with input from Mark you have the option of getting an estimate, a proposal or time and material. Once the procedure is chosen the next step will be determined.
Estimate
There is no charge for estimates, but they are not a guaranteed figure. An estimate is great for getting an approximate idea of the cost for doing a project. The time to get the estimate back to the customer will be affected by the number of proposals previously scheduled. Because a customer is paying for a proposal, they take precedence over an estimate.
Proposal
A proposal can follow an estimate or be the first step whichever is preferred. The proposal will give a detailed account of the scope of the project and the price for each part. There is a charge for the proposal determined by the size and complexity of the project. It is recommended you get a proposal which will be a guaranteed price for the work as described and gives clarity for both the customer and the contractor.
Contract
The contract is the completion of the proposal process. It covers things beyond construction; i.e. funding if applicable, property boundaries, the time within which the project will be started. Due to the number of proposals prepared and not knowing what order signed ones will be received, the start time won’t be determined until the proposal has been signed and returned. Also included in the contract are basic terms and conditions including things like; specifications, descriptions, expectations, insurance, warranty, media permission, etc.
Proposed Change Order
A proposed change order serves the same basic purpose as a project proposal. If there are changes to be made to the project scope of work, it allows for the customer to know what the price adjustment up or down will be. Things typically addressed by proposed change orders include additional or less work, credit for material or work not provided by the contractor, adjustments up or down for allowances, etc. Proposed change orders also include thing like adjustment to the time for completion and how the change order will affect the payment schedule.
Change Order
Change orders complete the proposed change order the same way a contract completes a proposal. The most important thing about a change order is that it gives a new total for the complete project including the original contract amount, all previous change orders with the addition of the most recent one.
Time & Material
This is exactly what it sounds like. You will be charged for time spent and material used. This method is the simplest and the quickest way to get a project started, but also has the most potential for disappointment. With this process there is more probability for prices to get out of hand if additional work is added throughout the project.