Tuesday, May 20, 2008

Tired of builders who don’t share your priorities…? Us too!

Mountain Home Solutions builds homes differently. We believe building a dream home should be a positive and predictable experience for the homeowner and the builder. With this in mind, we are proud to offer our Client Alignment Program (CAP), which reduces the risk, stress, and cost of home building. CAP ensures that we want what you want: To build a quality home on schedule exactly to your specifications.

How New Homes are Usually Priced

Most commonly, new home building projects are priced either as a fixed contract price (an all-inclusive quotation) or on a “cost-plus” basis. Traditional fixed contracts are necessarily high, since contractors are forced to heavily cushion their estimates, in order to cover any unknown costs or price increases. With cost-plus contracts, clients pay cost of labor and materials plus builder mark-up. Cost-plus fee structures do eliminate the need for risk premiums, but hold other inherent risks to the client, since they are based on total building costs and offer little incentive to control costs and meet deadlines.

How We Do It

Unlike traditional home building contracts, CAP is a combination of the best features of fixed and cost plus agreements. The security and predictability of fixed builder fees and a set completion date with the flexibility and cost-saving potential of pass-through costs. With CAP, we are paid a fixed fee that includes all builder charges, including supervisory fees. We operate on a true pass-through basis, which means our clients pay actual cost on all labor and material purchases. We are paid a fixed fee to manage the project to completion. We have incentive to complete the home on time on budget.

Shared Priorities

• Budget. Because CAP enables clients to pay actual costs for all labor and material purchases, clients avoid paying the risk premium associated with fixed contracts. And unlike cost-plus contracts, our fees do not increase proportionate to total building costs. We do not charge a percentage fee for upgrades (other than the actual cost of the upgrade itself). Our fees are fixed and guaranteed, provided the time required to complete the project remains unchanged.

• Schedule. With CAP, both the client and the builder benefit from an on-time (or ahead-of-time) completion. If we are unable to complete the project before the project deadline, we absorb the full cost of managing the project to completion. Our general contracting fees are fixed and based on the professional management of the project, not simply on how much money is spent. Mountain Home Solutions is highly motivated and accountable for meeting the project deadline.

• Quality. Quality will be measurable and never sacrificed. Quality specifications and standards are carefully discussed and documented with every client, and fees are fixed in advance. At Mountain Home Solutions, we believe quality construction speaks for itself.

We are eager to discuss details of our Customer Alignment Program and to answer your questions. Tom Ryan, President and CEO, will personally review CAP with you. Contact Tom by phone at 877-538-6432 or 828-691-5199 or via email at tryan@dreamhomesmadeeasy.com.

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