Fixed-price or cost-plus quote: which suits the project

Before starting a renovation, it's worth deciding with the client on the billing model: fixed-price or cost-plus, because they share the financial risk very differently between the parties.

Fixed-price quote: fixed price, professional's risk

The client knows the total cost from the start, and any deviation in material or hours is borne by the professional, except for changes expressly requested by the client during the work. It gives the client great peace of mind, but demands a very precise prior calculation from the professional, with enough margin for reasonable unforeseen events.

Cost-plus: real cost, client's risk

The client pays the real costs of materials and labour as they are incurred, plus a management percentage for the professional. It is more flexible for last-minute changes and reduces the professional's risk, but demands a lot of trust and transparency, because the client doesn't know the final cost until the end.

When to recommend each model

The fixed-price quote works best on projects well defined from the start, with no expectation of major scope changes. Cost-plus work is more suitable on projects with many initial unknowns (refurbishment of old buildings in unknown condition) where a firm fixed price would be risky for both parties.

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