Providence, RI 02909 (401) 266-2156

Methods for Paying the Construction Contractor

How Building Companies Are Compensated

Hiring a construction company is a need while building a structure. Most of us are familiar with their methods and the tools they use. Only a select handful are aware of efficiently billing clients. The price of the construction service will rely on the terms and conditions you have negotiated with the construction contractor, just like it does with any other service you purchase. Continue reading to find out how they determine what to charge their customers:

Fixed Bidding

Most contractors will give you a bid outlining the exact cost of having your establishment developed at a given time and day. They will search for suppliers that can give them good prices for the construction supplies they will utilize to make their bid competitive. You don’t have to worry about their labor costs because it is a fixed bid.

Additional Pricing

The process by which a construction contractor bases their estimates on how much time and labor it will take to build the institution. The supplies and tools they use will incur costs. It only applies if the contractor keeps up with the project’s expenses.

Combo Offer

In actuality, this transaction combines the first two payment options. Some establishments will give a fixed bid, others on an hourly basis, some on a material and time basis, and still others on a percentage basis. Combination bids simplify and expedite the general construction process for both the contractor and the client.

These are the basics of how contractors bill their customers. The construction firm you can rely on in Providence, RI is NI Outdoor Construction if you’re seeking a reputable construction service at a reasonable price. We also provide house addition services in addition to construction. Give us a call at (401) 266-2156 right now to learn more about the service.