The Cost Plus model: Building with Transparency and Trust

One thing about Unstoppable that separates us from other contractors is our cost plus fixed fee budgeting model. 

Most contractors will give you one fixed price for your project with no line item budget and no real clarity on their material and labor costs. Once you sign a fixed price contract, this number can only go UP with any changes or unforeseen field conditions. Then the common practice is to build it as cheaply as possible and keep the difference in the contractor’s pocket. We believe this model is unfair to the homeowner. There is a pressure to “protect a fixed bid”  which encourages cutting corners to maintain margin. Also this model incentives change orders as a profit center. 

Because of our background working directly with Owners and helping them to develop budgets from the beginning, we take a more collaborative owner-led cost plus approach. Cost plus benefits the homeowner by providing transparency, flexibility, and real-time control over costs, allowing them to make informed decisions and ultimately get higher quality results without paying for unnecessary contractor contingencies. Here’s how it works:

We prepare a line-item estimate first thing, based on our historical data, of what we think your ADU will cost. We prepare this to be a healthy budget, a real number that we think you could be in for. We do not “low ball” or obfuscate the number in order to get the job. We’d rather be a little high than a little low in our initial estimate. This helps you have a reasonable idea of what to expect.

Then, as bids and contracts come in, you (the owner) will have full visibility. The budgets get solidified based on actual proposals, aka the cost. If the stucco comes in a little less than we thought, for example, the budget gets adjusted down and that savings goes directly to the homeowner. Unstoppable Construction gets a fixed fee, for running all of the project management, field operations, inspections, scheduling, and sequencing. We also solve problems on a daily basis and take care of invoicing, accounting, warranties, and other paperwork.  

We consider any owner's budget constraints from the beginning. By knowing your maximum desired out of pocket number, we can direct you to any value engineering or cost saving measures and this becomes a collaborative process. We can guide you through picking finishes that align with your budget (sometimes, we might have to break it to you that you can’t afford a helipad on the roof or that marble fountain out front). We want to be on the same team as the owner, to develop this project and budget together, rather than being adversaries. 

You pay for project costs based on progress, percentage of the job that is complete, and receipts. We show you all signed proposals and all receipts. We believe this builds transparency and trust with our clients. You see actual costs: labor, material, and subcontractors.  

In a fixed bid, contractors often build in contingencies for the unknown. In a cost plus model, if these unknowns don’t happen, the homeowner sees the savings. The cost plus structure aligns both of our incentives: we get paid fairly for our time and expertise, and you benefit from efficient decisions. 

After all, we are in your backyard building an investment for you that is extremely valuable. We should have the best business relationship possible.  Here is some feedback we’ve gotten from our central Tucson clients: 

“After interviewing contractors for over six months and nearly giving up, we met Amanda and knew within minutes that Unstoppable was the right fit—honest, knowledgeable, collaborative, and transparent.

They gave us clear options for our small existing structure, explaining the pros, cons, and pricing of building onto it versus starting fresh. Choosing fixtures and finishes was simple and stress-free thanks to Amanda’s organization and guidance, and Jon managed the build with constant communication and a meticulous eye.” 

And 

“Much thanks to Amanda and Jon for helping us realize a backyard art studio/casita for all of our projects waiting in the wings! We greatly appreciate A and J’s approach to supporting small-space living ideas at reasonable prices - and prioritizing our bottom line rather than their own.

Worth every penny!!”