Lifestyle

A Comprehensive Guide To Types of Builders And Contractors

Published

4 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

Derik Fay: The Quiet Power Broker Who Scales Empires and Empowers Generations

Published

8 hours ago

September 14, 2025

Michelle Langton

At 46 years old and standing at an impressive 6’1″, Derik Fay is more than an entrepreneur—he is the architect behind a network of thriving businesses and a digital mentor for thousands. His journey from a single neighborhood gym in Florida to holding stakes in over 40 companies spans decades of strategic vision, discipline, and authenticity.

From Modest Beginnings to a Marketplace Maven

Born on November 19, 1978, in Westerly, Rhode Island, Fay’s early environment offered little in the way of nepotism or crutches—but plenty of lessons. He dropped out of college after just one semester and embraced the grind. At just 22, with lean resources and fierce determination, he launched his first gym. That venture would eventually grow into Florida’s most successful independently owned fitness chain before being acquired by a publicly traded company.

This early win became the foundation for 3F Management, the private equity firm Fay launched post-exit. Today, 3F powers brands across sectors—from fintech and residential infrastructure to combat sports, entertainment, and beauty—each elevated through Fay’s hands-on approach to ownership and operational excellence.

Visibility as Strategic Leverage

Fay’s ascent into public consciousness was not staged. He built his online presence—now over 1.4 million followers strong—through honest, unfiltered takes on business, failure, leadership, and growth. His content resonates because it isn’t rehearsed; it’s earned. Followers tune in not for spectacle but for insight, often quoting “He doesn’t just invest—he builds your belief,” reflecting Fay’s authentic support.

Building Brands, Restoring Hope

Among his notable ventures is Bare Knuckle Fighting Championship (BKFC)—a testament to his willingness to enter unorthodox sectors with strategic clarity. In other less obvious arenas, Fay reinvigorated a faltering beauty company by pairing it with Hollywood cachet and narrative-driven marketing. In another case, an AI startup saw its valuation ascend tenfold in under a year after Fay contributed not only capital but also storytelling structure and vision.

Estimated Net Worth & Long-Term Vision

Although Fay maintains a discrete public profile, credible industry estimates place his net worth somewhere between $100 million and $250 million. This valuation comes from his diverse equity stakes, successful exits, real estate investments, and his firm’s consistent growth and reinvestment cycle.

Personal Life Anchored in Legacy

Off-screen, Fay is a devoted partner to Shandra Phillips (since 2021) and a hands-on father to two daughters: Sophia Elena Fay and Isabella Roslyn Fay. He’s more than a mogul—he’s a mentor. An embodiment of “If I can do it, anyone can,” his presence in DMs or quick coaching call is not rare, but intentional.

Rerouting the Model of Modern Wealth

Unlike today’s entrepreneurs who prioritize visibility and virality, Fay applies visibility as a lever—not an objective. He quietly scales, confident that his systems and culture will outlive the trends. He mentors, not performatively, but tangibly. For him, success isn’t a moment—it’s a long-term ecosystem amplified through structure, not spotlight.