The fixed-price contract has been the default in residential construction for decades. It feels safe — one number, signed off, done. Except it isn't. Here's what's actually going on behind that number, and why Built Clear does things differently for clients across Chester, North Wales, and the wider North West.
How fixed-price contracts actually work
When a builder gives you a fixed price, they're not quoting the actual cost of your project. They're quoting the actual cost plus a risk buffer. That buffer covers unexpected ground conditions, material price rises, the fact they underpriced a subcontractor, or just a bad run of weather on site.
It's rational, from their perspective. They've agreed to deliver the job for a set amount no matter what happens. So they pad. Typically anywhere from 10% to 20% on top of what they genuinely expect it to cost — sometimes more on complex projects like barn conversions or phased renovations.
The result: you pay for risk that may never materialise. If the job runs smoothly, the builder keeps the contingency. You'll never know.
The adversarial dynamic it creates
"Every variation becomes a battle when a builder is trying to protect a margin they never told you existed."
Fixed-price contracts also create a structural conflict of interest. Once the price is signed, the builder is incentivised to deliver the project as cheaply as possible within the spec — not to find the best outcome for you. If they can swap a specified material for a cheaper alternative and it meets the letter of the contract, they will. If a variation request gives them a chance to recover margin, expect that variation to come in high.
We've seen this play out countless times across projects in Chester and North Wales. What starts as a collaborative relationship curdles into a paper trail of disputes. Nobody wins — least of all the building.
How open-book works at Built Clear
The Built Clear model replaces all of that with three straightforward numbers:
- A guide price from your plans. Before we start, we price the project from your drawings — so you have a realistic, honest cost expectation. Not padded, not sandbagged.
- A fixed management fee. One agreed fee to run the entire project: programming the work, coordinating merchants and subcontractors, quality management, and keeping you informed throughout. It's agreed upfront and it doesn't move.
- A fair 10% on costs. Every invoice from a merchant or subcontractor passes to you at exactly what we pay, plus a transparent 10%. That covers our overheads and profit. Nothing buried, nothing doubled up.
That's the whole model. If you're building an extension in Chester or renovating a farmhouse in North Wales, you'll see every invoice as it comes in. There are no mystery line items, no unexplained markups, no cost that isn't traceable to a real piece of work.
Why clients typically pay less
Because we're not padding for risk, clients in Chester and across the North West who use Built Clear typically come in around 11% below what a conventional fixed-price quote would have been for the same project.
That's not a gimmick. It's straightforward arithmetic: if a traditional builder loads 15–18% contingency and the job runs normally, you've overpaid. With open-book management, you only pay what the project actually costs — plus a known, fair management fee.
On a £300,000 renovation, that difference is real money.
Transparency through Buildertrend
We use Buildertrend to give clients a live window into their project. You can see the programme, check the schedule, review invoices, and message the team — all from your phone. No chasing, no wondering what's happening on site.
For clients based outside Chester or who are managing a renovation in North Wales from a distance, this matters a lot. You're not relying on a weekly phone call. The information is there, all the time, in your pocket.
A relationship built on the same side
The deepest benefit of open-book isn't the saving, as welcome as that is. It's that we're finally on the same side as our clients. When a job runs well, you pay less — but we don't lose out, because our management fee is fixed. When something unexpected happens on site, we tell you immediately and work with you to find the best solution, rather than quietly absorbing it or raising a variation to recover margin.
Building projects in Chester, North Wales, and the North West are complex. There will always be surprises. The question is whether your builder is working with you when they come up, or quietly working against you.
At Built Clear, the answer is always with you. The book stays open.