Peters Custom Homes Private Estate Builders

PETERS CUSTOM HOMES

Custom Home Contract Types in Charlotte: Cost-Plus, GMP, and Fixed-Bid Compared

Custom Home Contract Types in Charlotte: Cost-Plus, GMP, and Fixed-Bid Compared

How the Three Contract Structures Allocate Risk, Reward, and Transparency on

M–$5M+ Charlotte Builds

Design Collaboration

s risk insurance gap-fill, vehicle and tool overhead, office overhead, and net profit. Net profit on luxury custom work in Charlotte typically lands at 8–12% of fee, not 18% of cost. Builders who claim much higher net are either hiding fee in inflated trade markups or are not running a real business overhead.", "Where fixed-bid hides cost. Three places: the buried contingency reserve in the original bid; the change-order markup multiplier (often stacked, e.g., 15% on labor + 15% on material + 10% on the total); and allowance forfeiture clauses (unspent allowance reverts to the builder rather than the owner). All three are negotiable. None should survive a competent attorney

Construction & Craftsmanship

s certificate-of-occupancy standard, not the builder

s right to end the project at any time, paying actual cost incurred plus a defined wind-down fee — typically 5% of remaining contract value) and termination for cause (defined builder default events, with 14-day cure periods and clear remedies including completion by a successor contractor at builder