Lifestyle

A Comprehensive Guide To Types of Builders And Contractors

Published

5 years ago

July 21, 2021

Just like construction and renovation needs differ from client to client, contracts and contractors also vary in type. Deciding on one helps the contractors, owners, and suppliers to stay on the same page.

Additionally, having to follow a specific contract type ensures timely, accurate delivery with customer satisfaction. All the work goes according to the plan; however, every kind of contract has its specifications.

The Different Types Of Contracts To Consider

Signing a suitable contract with the right contractor is critical to the project’s quality of work and timely delivery. Building projects, like those for steel or metal buildings, are a significant investment, and it is imperative that your money is put to good use.

That is why you must take the time to vet through available contractors and get an ironclad contract with them to ensure the success of your project.

Each type of contract has its own set of perks and drawbacks. However, the most critical considerations are the scope, budget, schedule, delivery, and teams involved in a project.

Lump-Sum Contracts

These entail having a preset price with a clear project scope. Instead of breaking up the project into milestones and pricing each step, the project is priced as one whole before beginning with the work. Bidding in these contracts is simple, and a significant profit margin could be generated if the project is completed under the price. For the owner, this kind of project would bring timely delivery.

However, if the calculations and estimates are even a bit erroneous, the margin of error when setting the price could be enormous. If the costing procedures are inaccurate, there are high chances of the builder suffering a loss. Additionally, if the contractor chooses to outsource a few tasks, any problem will also be accounted for in the preset price. Hence, outsourcing can potentially bring loss to the contractor.

Cost-Plus-Fee Contracts

This type of contract brings flexibility for the builder. Only the contractor’s fee is predetermined, while the owner has to pay for the cost that goes into the project accordingly. Profit for the contractor is guaranteed, but the paperwork can be a great hassle. That is why keeping track of all receipts and payments is crucial.

When making this type of contract, classify what sort of costs shall be reimbursed and which ones can be accounted for in the contractor’s fee.

Guaranteed Maximum Price Contracts

This type is a mix of the two types of contracts discussed above. It calls for the owner to fix a cap on the total cost. The owner would bear any additional charges for materials used and would also enjoy any subsequent savings.

The project scope is clear, and the delivery of work goes on with mutual consensus. The project may even start earlier than scheduled after the cap has been set to ensure timely delivery.

A pro tip to get the best bargain and ensure timely delivery of the project is to use the savings on the cost to entice the contractor. In fact, split the savings to create a win-win situation for both parties.

Unit-Price Contracts

Rather than binding the contractor for the project’s entirety, this type of contract is divided into separate units.

The contractor may provide the owners with a fixed price for each unit of work. The total amount of work required is not precise, and the owner is at significant risk. These contacts are usually applicable in civil projects.

The owners are responsible for providing for all additional charges that go into the extra work done. Additionally, the total price of the project can not be known until the job is complete.

These contacts may not have a designated deadline to abide by as the amount of work required is not measurable, keeping the project scope slightly unclear in terms of daily tasks.

Conclusion

The complexity and expenses incurred by a project determine the type of contract that is the most suitable. It is best to consult with several builders and contractors before signing a contract with any one of them.

The correct cost estimates and realistic deadlines can only be set once you get in touch with contractors who care about your budget and time.

Lifestyle

Kelli Lewis and Her Inspiration Behind KelliWorks

Published

3 hours ago

March 29, 2026

Michelle Langton

Kelli Lewis has made a name for herself through her virtual accounting firm KelliWorks which specializes in dealing with the finances of small and mid-sized businesses. The firm was established, keeping in mind the need for expert and technology-driven accounting services to cater mainly to small and mid-sized businesses. At a time when these small and mid-sized business owners were struggling with the inconsistencies in their accounting work, bookkeeping, and payroll management, Kelli came up with her firm that provided bookkeeping, financial strategy consulting, helping businesses to deal with their finances and giving solutions using technology, and payroll management.

Kelli uses her experience as a small business expert to help businesses still stuck with the conventional methods of accounting. Her firm, KelliWorks is remote and leverages the latest accounting technology and helps these small and mid-sized businesses find accurate and scalable solutions.

Kelli Lewis’ Inspirational Story in Being a Successful Small Business Expert

Born on April 5, 1985, in Orange, New Jersey, Kelli Lewis does not have any formal education, nor has she graduated from an educational institution. Kelli’s early years were spent on her mother’s recovery from a coma after a car accident. It was during that time while spending time with her mother at her rehabilitation, Kelli understood what it meant to be adaptable and perseverant. That, later on, went on to become the qualities she used in her business approach towards entrepreneurs. She built her career through hands-on experiences, an understanding of business operations and financial management, and mentorship.

Kelli’s story is inspiring because despite not having a formal degree, her business KelliWorks was created to encourage entrepreneurs to find their strength and build a team that compliments their workforce. Kelli’s understanding of how to sustain a business, future-proof business models, and implement financial safeguards have helped her guide businesses to navigate their obstacles.

She attributes her success at her business to the values she learned while growing up. She uses the experience gained through back-office management, business consulting, and accounting. That enabled her to understand the need to get rid of outdated accounting systems and come up with a modern one that was technology-based.

Her virtual accounting firm, KelliWorks offers a range of business and accounting consultations, and goes with the catchphrase, “KelliWorks, so you don’t have to”. They include:

● Bookkeeping and Payroll Management – This ensures accurate financial records and smooth payroll operations.

● Business Process Optimization – Helps to implement automated systems that will improve forecasting and financial decision making.

● Financial Strategy and Planning – Assists businesses with budgeting and cash flow efficiency. It reduces reliance on manual processes.

● Technology Integration – It utilizes cloud-based accounting software and financial tools to streamline business operations.

KelliWorks is dedicated to lessening the financial stress of small and mid-sized businesses by giving them support and proper financial guidance. The entrepreneurs are informed about the best practices they can adopt, the long-term successful financial strategies, and technology solutions. Their commitment to stay at the forefront of small business financial consulting is commendable. The firm deals with the financial aspects of the businesses and thereby helps the entrepreneurs concentrate on their business growth.

Running a successful business and managing a family can be a challenge. Kelli Lewis balances her family life with her work life by incorporating the systems that allow her business to function efficiently and effectively. Her boundaries between work and family are well-defined. Kelli sets a good example to those who are business-minded on how to cope with the pressures of being competitive and flexible when it comes to combining her personal and work lives together.