Payment Policy, Our Fee & Refund of Excess Construction Funds
Your construction funds are used only for construction activities on your project. We will open a separate checking/savings account for your project. These funds will not be co-mingled in our general fund. We will review/audit how this money is spent with the client on a monthly basis. Please note that we can only perform construction activities when we have funds in our account to cover the cost of the construction. At the end of the project any unspent construction money is returned to the client!
$8,040 was returned to Mr. Goodwin on his 1,900 SF remodel/upgrade project.
We work on a fee basis for our profit (15%) and overhead (15%). All construction costs are at cost with no markups. Our fee is based on 30% of $200/SF or $60/SF (square foot). New construction cost by the PF Method Home Construction company including tax and fee is estimated in the $150 to $250/SF range (for projects 3,000 SF and larger). Our fee is taken at the first of each month in an amount determined by the fee divided by the number of months of estimated project duration.
On projects where SF costs do not make sense then a negotiated fee will be established. Once set the fee does not change throughout the project unless additional SF is added to the scope of work. If SF is reduced our fee is reduced.
Note: Projects less than 3,000 SF can have higher $/SF costs than stated above because the size of the project matters in determining SF costs. This is because the larger the project the less it costs per SF to build. The actual construction cost of your project can be much lower. However, this depends on the ability of Mr. Fay and the homeowner to work together to agree to limit costs where possible while still ensuring the finishes are beautiful and of high quality. Also, owner changes are a source of increases to the final cost of construction.