Fixed Price vs. Cost Plus Renovations
- Mint Kitchen + Bath
- Feb 3
- 6 min read
February 3, 2025
Why a Fixed Price Contract May Be Your Best Bet
Renovating your home should be an exciting milestone—yet many homeowners find themselves worrying about hidden fees, endless invoices, and confusing contracts. There are two main contract types when hiring a renovator: fixed-price
and cost-plus. While there are pros and cons to both, as a homeowner, a fixed-price agreement can offer greater certainty, fewer surprises, and overall peace of mind when taking on a renovation project.
At Mint Kitchen and Bath, we pride ourselves on being a fixed price renovator committed to delivering high-end, full-service renovations without the uncertainty of skyrocketing costs. Read on to explore the differences between these contract models why a fixed-price contract is often the best approach for homeowners seeking a stress-free renovation.
1/ Understanding Fixed-Price vs. Cost-Plus
Fixed-Price Contracts:
With a fixed-price renovation, your contractor provides an all-inclusive cost covering materials, labor, design, and project management for the agreed-upon scope of work. This means no guessing games and fewer unexpected bills along the way. For homeowners who want to be able to budget ahead of time and avoid extensive mid-project negotiations, fixed-price can be a strategic choice.
Cost-Plus Contracts:
With cost-plus, you pay for exactly what labor and materials are used during construction, plus a set contractor fee or percentage. Some see this as flexible—particularly if you are planning to make significant design changes mid-project. However, this can be nerve-racking as there is no guarantee on price and your budget could potentially run out before the project is completed.
2/ How Cost-Plus Contracts Work: Pros and Cons
Pros of Cost-Plus
Itemized Transparency: You’ll see line-by-line expenses for materials and labor.
Flexible Changes: Adjusting scope partway through can be simpler—though these changes still affect your final cost.
Cons of Cost-Plus
Uncertain Final Costs: Every unexpected discovery or upgrade can bump the price higher.
Continuous Oversight: You may need to review each invoice or expense in order to stay on top of your budget, which adds extra stress and takes time.
Potential Overruns: Without strict boundaries, a “dream finish” here or a “luxury add-on” there can quickly inflate costs.
If you prioritize absolute freedom in material choice and design changes—without worrying about cost unpredictability—cost-plus might appeal. But if you want certainty and a partner who can guide you to the best decisions for your lifestyle, a fixed-price renovation is often more reassuring.
3/ How Fixed-Price Contracts Work: Pros and Cons
Pros of Fixed-Price
Budget Confidence
From the moment you sign the contract, you know precisely what your renovation will cost. This predictability is invaluable for homeowners who appreciate clear financial planning.
Simplified Decision Making
Rather than making choices in the middle of construction, you collaborate with your contractor beforehand to finalize scope, materials, and finishes. This approach ensures efficient timelines and fewer delays because all materials can be ordered before your project even begins.
Low Stress
You won’t have to monitor each item’s cost throughout the renovation. This allows you to focus on the exciting parts of the project, such as design details and finishing touches.
Contractor Accountability
A reputable fixed price renovator takes on the risk of managing labor, materials, and timeline within the agreed price, motivating them to avoid delays and handle unexpected challenges.
Cons of Fixed-Price
Less Flexibility for ChangesMajor modifications in the middle of the renovation may require a change order. Clear communication early on helps mitigate this.
Complex RenovationsWhen starting a complex renovation that requires significant structural or mechanical (electrical, HVAC, Plumbing, etc.) changes to an existing system, it can become difficult to properly asses what work will need to be done until demo is completed and everything is open and can be looked at. To solve this however, often an “allowance” is given for each unknown section (framing allowance, electrical allowance), and then assessed once everything has been uncovered and increased or decreased based on the findings.
Built-In ContingencyContractors do factor in some contingency to cover typical issues—but a reputable and experienced contractor will estimate accurately based on their professional experience.
4/ Key Benefits for Quality-Focused Homeowners
Homeowners who place a premium on quality craftsmanship, great communication, and an efficient timeline often gravitate toward fixed-price contracts. Why?
Premium Materials Within Scope
By agreeing on finishes and fixtures upfront, you can enjoy the high-end look and durability you desire without worrying about hidden costs later.
Clarity on Upgrades
If you decide to upgrade to a more luxurious countertop or tile, your contractor can present a straightforward change order for your approval—no surprise markups.
Efficient Process
Because budgeting and design decisions occur early, the actual renovation proceeds more smoothly, saving you time and potential stress.
5/ Why Mint Kitchen and Bath Chooses a Fixed-Price Approach
At Mint Kitchen and Bath, we specialize in high quality residential renovations in and around Burnaby, Coquitlam, Port Coquitlam, Maple Ridge, and Langley. Our aim is to simplify the renovation process, and we believe our fixed-price model offers our clients exactly that:
Complete Proposals: We include every aspect of your project—labor, materials, design costs - so you won’t have any surprise expenses at the end of your project.
Expert Project Management: Our team coordinates each phase, anticipating potential issues to ensure the renovation stays on track.
Collaborative Design Process: By finalizing plans and selections before work begins, we eliminate mid-project indecision.
Our goal is to offer an efficient, simple and even enjoyable renovation experience. Being a full service Design + Build firm allows us to do all the heavy lifting, while you get to enjoy the creating space of your dreams.
6/ Case Study: Fortress Kitchen Remodel
A recent main floor remodel in Port Coquitlam showcases the benefits of our fixed-price approach. Our client wanted a full kitchen and main floor remodel, with all new custom cabinetry, quartz countertops, a plastered rangehood and old-world brick backsplash. After finalizing the layout and finishes in the initial planning phase, we provided a comprehensive fixed-price contract that included every detail—from demolition and disposal to flooring and final paintwork.
During demo, we encountered some electrical that needed to be upgraded. Because it fell within our anticipated scope, the client didn’t face any surprise charges, and the end result was a stunning and functional kitchen delivered on time, on budget, and exactly as promised. Because we had pre-planned everything, we were able to complete this kitchen project in 6 weeks.
7. Tips for a Successful Fixed-Price Renovation
Communicate Your Vision
Provide detailed preferences for layouts, finishes, and any special requests. The more specifics you include upfront, the more accurate your quote will be.
Review Your Contract Thoroughly
A good contractor should be able to provide you with a detailed quote, so make sure you understand exactly what’s included and what’s not. Ask your contractor to clarify any terminology you might not understand.
Communication is Key
Be sure to ask your contractor to send you updates as the project progresses. This includes day-to-day progress or any issues or changes that might have occurred.
Ask for a Timeline
An experienced contractor should be able to give you a relatively accurate idea of when the project should be completed by. If a contractor is unable to give you a project schedule or a definite project completion date, selecting them could mean you might be looking at a long timeline.
Do Your Due Diligence
It’s become easier than ever to check a contractor’s reputation online. A quick Google search will reveal what their previous customers think of them, and gives you an opportunity to look at their previous projects to determine if you think they’d be a good fit for yours. (Check out our Google Reviews and our Instagram!)
Conclusion
For homeowners who value quality, transparency, and efficient timelines, fixed-price renovations offer a clear path to achieving your dream home—without the stress of fluctuating costs. At Mint Kitchen and Bath, we’re committed to delivering exceptional, high-end renovations across Vancouver and its surrounding areas. If you’re ready to embark on a stress-free renovation journey with a fixed price renovator. If you have a project you'd like to discuss we’d love to hear from you. Connect with us today!
TLDR (aka FAQ’s)
Q1: What is a fixed price renovator?
A fixed price renovator offers homeowners a set contract amount that covers materials, labor, and project management. This ensures you know your renovation costs upfront, reducing financial uncertainty.
Q2: Is it easy to make changes in a fixed-price contract?
Q3: How do I choose the right fixed price renovator in the Lower Mainland?
Q4: Does a fixed-price contract mean I could overpay if there are no hidden issues?