Policies - Custom Homes

Your initial process is largely dictated by where you are in your own steps prior to contacting us. We will guide you through what to keep in mind when closing on your lot, gathering information for your bank to secure a construction loan, etc.

Billing Structure

Cost Plus

Candler Construction manages billing on a cost plus structure. This means you will be charged the cost of the job with additional builder and management fees. We do not mark up the subcontractor’s invoices. We pass that direct cost to you and simply add our percentage to that cost. Our fee is a flat builder’s fee based on 20% of the cost of the project. Before you contract our services, we will estimate the entire project including our final fee using historical data for your project scope. This is only an estimate. The final budget and spend is not contracted or guaranteed. Our fee will remain the same unless substantial changes are requested after already estimated/planned work has been completed.

Builder Fee

You will see a Builder fee listed on every invoice along with your On-Site management fee and Client Manager fee. The Builder fee is calculated as an even disbursement across the estimated length of the project from our flat fee rate. Example: for a build cost of $1 million on an estimated 8 month project, our flat fee would be $200,000 and broken out across 8 months worth of invoices. This fee covers overhead to run the business as well as keep licenses current, insurance, continuing education and other costs of doing business.

On-Site Fee

This covers the day-to-day fuel, physical project management on job premises, time with subcontractors, scheduling of the project. This fee is set at $3000 per month minimum dependent on the scope of the job. Projected on-site management fee will be noted in the proposed estimate/contract. You will see the fee broken into a $1500 line item per invoice (billing on the 1st and 15th of the month).

Client Manager fee

This covers administrative work done by the communication manager assigned to your project to keep you up to date on what work will be happening on site, what selections or meetings should be made and keeping you informed of the overall schedule of your project. This is charged at $1000 per month for the length of your project.

Payments

Billing is run twice a month on the 1st and 15th or next business day if the 1st or 15th fall on a weekend or holiday. Invoices are for work already performed or selections that have been ordered. We do not bill for work not yet performed. Payments are due upon receipt of invoice. Payments that are more than five business days past due will result in work stopping. Accepted forms of payment are check or card through our online management system Houzz.

Retainer

A retainer of $20,000 will be required to start work on your project. After you have signed the proposed budget, an invoice will be sent to you for the retainer fee. The retainer goes towards mobilization costs such as permitting fees, demolition costs, etc. and not towards management fees. Your first invoice after the retainer invoice will note a credit of $20,000.

Project Management

Phase Based Schedule Building

We adhere to a phase based method of project management and schedule communication. Building a house will have four distinct phases: site prep, rough-ins, interior finishes and closing out. There are many details that go along with each phase. A proposed schedule will be created for your project in our management system and shared with you. Your assigned project manager will keep that schedule up to date with any changes that might happen, reminders for tasks you need to complete (meeting with suppliers to pick finishes, etc.), and general communication on the status of your project.

Schedules are a team effort. There will be items that require a client’s input, decisions or selections to be done before other work can continue. When there is information needed from the client by a certain date for work to continue per projected schedule, we will make sure you know about those things, what information or decisions are needed, any vendor meetings that need to be done, etc. to keep things on track. This will be communicated to you via your project manager.

Change of Scope: Change Orders

We understand that a building process is not set in stone. Changes to scope or initial design is up to you the client. We will work to accommodate changes, but the client must accept that any change creates ripple effects in the schedule and budget. All changes are subject to change order fees of $250 per request. A change order fee is assessed when approved work already set in motion, ordered or completed is, at the client’s request, changed to a new design. This fee covers the administration needed to accomplish the new scope of work. The 20% builder fee will also apply to the new work cost.

Communication Policy