Contract Options

We at Cumberland Building Services understand our clients' needs for involvement in every step of the construction process. Since we work in such a specialised sector of the housing industry, we have come to understand the need to offer our clients different types of contracts. The two most common forms are the "Traditional Lump Sum Contract", and "Cost Plus Contract".

Fixed Lump Sum Contract:

Best suited to clients that know exactly what they want, and want the comfort of knowing what the end cost will equate to. With this style of contract, it is very important that the clients' expectations have been well documented and are comprehensive. Lists of the different types of Lump Sum Contracts are available from:

  • MBA - www.masterbuilders.com.au
  • HIA - www.hia.com.au

Cost Plus Contract:

Best suited to the client that wants to be involved in the overall look and design of their new home. The Cost Plus Contract allows the client and Project Manager to work closely together, to achieve a home that exudes the client's personal style.

CBS has adopted a system to combat client uncertainty, and maintain honest working associations throughout the project cycle. We will create an easy to read spreadsheet to accurately monitor costs, within the parameters of clients' budgets.

CBS will apply the following method:

  1. We will produce a descriptive spreadsheet budget, outlining all work activities for every trade, with associated costs.
  2. At project commencement, additional columns will be added, with information on actual costs associated to each activity against the budgeted amount. This is only achievable on commencement of the project, as trades are only able to inspect and gauge actual work activities once onsite. Information is updated daily, and can be obtained by the client at any given time.
  3. We will then produce progress claims via the spreadsheet fortnightly, documenting all monies claimed, accompanied by invoices from suppliers and contractors.
  4. Within the initial stage of construction, further columns will added, with reference to actual cost of completion of each trade section as it becomes available. Therefore the budget transforms itself into the actual end cost of construction during the early stages of the project.

This system works so well, because not only is the client paying market value for their home, but the client is aware, very early in the construction cycle, of any cost over runs, or of cost savings that have been obtained.

Cost savings can be used to reduce the overall cost of construction, or can be reapplied to the project to pay for special additions and extras, at no variation cost.

Our system was developed in 2001, and to date we have never exceeded our original budget. CBS can safely guarantee that no project will ever exceed the pre-determined outlined budget, if the scope remains unchanged.