The cost plus system isn’t new, but today’s market volatility has made it the go-to contract style for many residential contractors. Material prices move weekly, clients demand line-item clarity, and crews expect dependable cash flow. By pairing the cost plus model with CountBricks real-time voice estimating and AI-driven takeoffs, residential builders can insulate profit, wow clients, and eliminate hours of spreadsheet drudgery.
Under a cost plus agreement the client pays the actual project cost—materials, labor, equipment—plus a predetermined builder fee. That fee may be a flat dollar amount or, more commonly, a percentage markup on direct costs.
• Example: A $300,000 direct cost project with a 15 % fee becomes a $345,000 contract.
• Actual costs are tracked and invoiced as the work progresses, giving owners visibility and builders protection against unforeseen price surges.
• Price volatility coverage: When framing lumber jumps 20 % mid-project, you don’t eat the increase.
• Cash-flow consistency: Costs are billed as incurred, keeping your pay schedule aligned with spending.
• Trust through transparency: Owners see real invoices, so conversations focus on choices, not suspicion.
• Scope flexibility: Design changes are simple change-orders instead of adversarial renegotiation.
The contract only works if you can capture, organize, and present costs quickly. That’s where CountBricks excels.
1. Walk the site with your phone.
2. Dictate material counts and crew hours live.
3. CountBricks AI converts speech to line items and pulls today’s supplier pricing.
• Upload a PDF set to CountBricks.com/takeoff.
• Our computer-vision engine extracts wall lengths, slab areas, roof squares, and more.
• Quantities flow directly into your cost plus estimate.
• CountBricks syncs with regional supplier feeds every morning.
• Your markup is applied instantly so every client meeting features accurate numbers.
Choosing the right fee is both art and math. Below are the models our residential contractors favor.
• Percentage of cost (10 %–25 % typical): Scales with project size and complexity.
• Tiered percentage: Lower markup on high-ticket items like lumber, higher on management-heavy tasks.
• Fixed management fee plus percentage: A base $25,000 admin charge plus 10 % on costs.
CountBricks dashboards let you test each scenario instantly—adjust the slider and watch projected profit and client price update side by side.
Even the best system fails without clear communication.
• Explain how invoices will detail supplier receipts and timecards.
• Show the client their personalized CountBricks portal for 24/7 cost tracking.
• Clarify approval thresholds—for example, any single purchase over $5,000 triggers client sign-off.
• Discuss likely cost movers: lumber, copper, fuel surcharges.
Every purchase order created in CountBricks automatically links to the correct cost code and work stage. Weekly, a PDF summary pulls:
• Budget versus actual by CSI division
• Variance notes written by your PM via voice dictation
• Upcoming commitments for cash-flow forecasting
Clients receive the same report minus internal markups, reinforcing trust while protecting your strategy.
• 4,200 sq ft new build, groundbreaking March 2023
• Contract type: Cost plus 18 % fee
• Lumber price spike: +11 % between framing bid and delivery
• Outcome with CountBricks: VOICE updates raised the estimate in 10 minutes, owner approved within the hour, builder margin preserved, schedule untouched.
• Pitfall: Delayed documentation = payment delays. Solution: instant photo and receipt capture via mobile app.
• Pitfall: Client shock at final price. Solution: weekly auto-reports keep surprises at zero.
• Pitfall: Under-estimating management effort. Solution: CountBricks time-tracking feeds direct labor costs to the penny.
1. Visit CountBricks.com/services and select “Cost Plus Setup.”
2. Import your material catalog or let our team preload regional pricing.
3. Choose a markup strategy and generate a sample proposal in under five minutes.
4. Share the branded PDF with your prospect and win the job with data-backed confidence.
Residential construction isn’t just about swinging hammers—it’s about managing risk, capital, and client relationships. A cost plus system powered by CountBricks gives you:
• Predictable profits in unpredictable markets
• Administrative time savings that return hours to field supervision
• A polished, tech-forward client experience that sets you apart from bidders still emailing spreadsheets
Schedule a live demonstration at CountBricks.com/consultation and see how quickly cost plus can become your most profitable contract type.
• Spoken or typed scope changes automatically create a new cost line, pull fresh supplier pricing, apply your preset markup, and produce a client-ready PDF in under 60 seconds.
• This speed keeps projects moving and eliminates back-and-forth emails that stall field crews.
• A traffic-light dashboard shows green when current margin meets your target, yellow when it slips two points, and red at five.
• Alerts prompt immediate action—renegotiating with suppliers or adjusting labor allocation—so profit erosion never sneaks up.
• Crew members clock in via geofenced mobile punches.
• Hours sync to the cost code, ensuring labor is billed accurately to the client and credited to the right phase.
• Supervisors approve with one tap; payroll and invoicing update instantly.
A 1960s ranch overhaul began as a fixed-price bid. Mid-demo, asbestos and outdated wiring added unforeseen costs. The builder switched to a cost plus agreement inside CountBricks.
• Additional $43,000 in remediation costs were billed transparently, preventing a $15,000 loss.
• Client portal updates maintained confidence, and the project closed on schedule.
• Set a not-to-exceed estimate to reassure cautious clients while still covering volatility.
• Use the CountBricks mobile app to photograph every receipt immediately; missing documents are the #1 delay in client reimbursement.
• Schedule weekly five-minute video summaries pulled from your CountBricks dashboard to keep stakeholders engaged without long meetings.
If you’re ready to protect your margins and deliver unrivaled transparency, explore our dedicated cost plus toolkit at CountBricks.com/services or book a personal onboarding session at CountBricks.com/consultation.
