Agreement guide
Cost-plus and fixed-price are two ways to structure a building agreement. The label matters less than the mechanics: the scope, the fee, allowances, exclusions, how changes are approved, and what records you can see. ClearBuild Texas typically builds on a cost-plus basis, with the structure set out in each written agreement.
Updated November 1, 2026
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The owner pays the actual project costs plus the builder's fee, as defined in the contract. The advantage is visibility: invoices and costs are documented, and savings stay with the owner. The tradeoff is that the final number moves with selections, site conditions, and changes, so a good cost-plus agreement explains how costs are documented, how approvals work, and how the budget is tracked.
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A fixed-price agreement sets a price for a defined scope. The builder carries more of the cost risk, and usually prices that risk in. The contract still needs to explain allowances, exclusions, owner selections, differing site conditions, and changes, because those adjust the price.
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On Hill Country acreage, some costs are not known until work starts: rock under the foundation, well depth, the septic system the soil allows, and the utility's line extension design. A fixed price has to cover those unknowns with allowances or contingency. A cost-plus agreement passes the actual cost through, with the approvals the contract requires.
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What is included, and what is excluded? Which selections are still open? How is a change priced and approved? What records will you see, and how often? What assumptions drive the schedule? Compare written scopes side by side, not just totals.
Common questions
No. The agreement type alone does not set the final cost. Scope, site conditions, selections, changes, and the builder fee all matter. Cost-plus makes the costs visible; fixed-price shifts more risk to the builder, who prices it in.
No. The written agreement governs exclusions, allowances, owner changes, and other conditions that can adjust the price.
ClearBuild Texas typically builds on a cost-plus basis. The structure for each project is set out in its written agreement.
Scope, specifications, allowances, exclusions, fees, approval and change procedures, schedule assumptions, and the supporting documentation.