FAQs

Below is a comparison of the available Project Delivery options in the market today and what we believe makes Architect-Led Design-Build the premier option.

Design-Bid-Build

This is the traditional method of the delivery of a construction project that has been utilized for decades. In this method of project delivery, the Client hires and contracts with an Architect or Designer to design the project and produce a set of building plans that can be used by a General Contractor to obtain a building permit with the AHJ (Authority Having Jurisdiction).

The Client then takes the sets of building plans that were produced by the Architect or Designer and typically gives them to several General Contractors who then bid the project out according to the plans. If the set of building plans are fully detailed and specified, then the bids by various General Contractors should be an apples-to-apples comparison. However, most of the time the drawings lack all necessary information, making it impossible to compare bids effectively between General Contractors.

During design, since the Architect or Designer isn’t as skilled at estimating the actual cost of construction, they typically design without regard for cost, which in the end means that the Client may pay for a fully completed design that they cannot afford to build, or they have to go back to the Architect or Designer and pay them to revise the building drawings at an additional cost, only to be re-bid again.

Once construction has begun, the Client (if he wants the project to turn out the way the Architect or Designer fully intended with their design), must continue to contract with and pay the Architect to observe the construction by the General Contractor, thus creating another relationship that the Client must be responsible for with their time and money.

Traditional Design-Build

In this method of Project delivery, the Client has a single point of contact and single contract, typically with a General Contractor. General Contractors who offer Design-Build services have a history of building from a set of building plans produced by a traditional Architect, but they market “Design-Build” by subcontracting out the design with a third-party Architect or Designer.

The main benefit to this method of project delivery is that the Design and Construction schedule is compressed since Design is taking place at the same time as bidding out the project. The Client does not have to spend a lot of time upfront on Architectural Design with one party waiting for them to finish their work, just so that they can then give it to the General Contractors to have them do the first step of their work in bidding out the project.

In many cases, the Architect or Designer who is hired by a General Contractor in a traditional Design-Build project delivery method provides a fairly minimal set of drawings sufficient for city permitting and not much else. This keeps cost down for the General Contractor and gives them a greater ability to influence the direction of construction, because the drawings lack necessary information. The Architects or Designers in these scenarios generally do not provide construction oversight, either, so there are no checks and balances. This leaves the General Contractor to make critical design decisions that may not be in the best interests of the Owner.

In addition, the Architect or Designer is contractually and emotionally bound to the General Contractor, who is essentially giving them the direction for their scope of work. Even if the Client is involved in the process, in the end the General Contractor is paying the Architect or Designer just as they would with any other subcontractor involved in the construction phase, so their loyalty is to the General Contractor and not the Client.

Architect-Led Design-Build

Through Architect-Led Design-Build, the firm that the Client has built the relationship and trust with throughout the Architectural Design Phase are the same people that help guide them through the construction phase by being the one responsible of managing subcontractors and coordinating the construction. In addition, Architects who are involved in Architect-Led Design-Build projects have a much better understanding of actual construction costs while they are in the Architectural Design phase since they are intimately involved in the day-to-day construction estimation and payment of construction materials by provided by suppliers and construction services performed by contractors.

In reality, Architect-Led Design-Build is a throw-back into history, and today is a revival of the ways buildings used to be designed and built.. Dating back to ancient times, Architects routinely took the lead in construction projects, and they were referred to as Master Builders. Whether it was building pyramids in Egypt, temples in Greece and Rome, castles in the Middle Ages, or cathedral churches in the 1700/1800’s, Architects as Master Builders were in charge of for the project from Design through Construction.

An extreme case was where Antoni Gaudi, the famous Catalan Spanish Architect responsible for the La Sagrada Familia Church, was so consumed in his project that he literally worked, ate, and slept at the site of the church while it was under construction between 1882 until his death in 1926. Ironically, that cathedral is so ornate that it is still under construction today with scheduled completion to be in 2032! While we may not go to those extremes of living at your project or taking that long to complete it, as an Architect-Led Design-Build project delivery method, we will be fully invested in your project.

In Texas, both Architects and Draftsmen (or Designers) are allowed by law to design residential spaces for construction.  Choosing to work with an Architect or a Draftsmen is a totally different experience.  The best way to describe the difference between an Architect or a Draftsman is that an “Architect” solves problems by creating an aesthetic design which solves a functional problem, while a Draftsman produces drawings that can be used to construct a project.  With an Architect, the drawings are just one of the tools that he uses to solve the design problem, while Draftsmen typically draw what is told to them to draw – whether it be from a Client or an Architect who employs them.

To become a Registered Architect, an individual must go through a time-consuming, rigorous process.  One must attend first a university to obtain a 4-year Bachelor of Architectural Studies (or Environmental Design as it is sometimes referred to by different universities).  Next, one must continue attending a university to obtain a 2-year Master of Architecture, which typically includes an final year thesis project where the Master of Architecture candidate envisions his own design problem, works on it for a semester under the guidance of a group of faculty members, and then must present and defend his design solution to a group of third-party faculty and business professionals.  

(Note:  Some universities offer a 5-year Bachelor of Architecture degree that is also accredited, but that is typically 6 years compressed into 5, so in the end – one who earns the 5-year Bachelor of Architecture has the same educational experience as one who obtains the 6-year Master of Architecture, and both are eligible to proceed onto the next steps for licensure.)

Once an individual obtains the accredited degree (5-year Bachelor of Architecture or 6-year Master of Architecture), they must perform about 6,000 hours of internship development working directly under the supervision of a Registered Architect.  This process involves working in various aspects of the practice of Architecture, so this work experience can take as little as 3 years but often requires more time to log the hours in the proper sections.  After satisfying the work experience, the Architectural candidate historically has had to pass (9) separate exams covering all aspects of Architectural Practice such as Pre-Design/Programming, Site Design, Construction Documents, Code Analysis, Structural Design, HVAC/Plumbing/Electrical Systems, Construction Practices, and Ethics/Project Management.  Today, the number of exams has been reduced from (9) exams to (6) exams, but the content that is tested remains the same.  

Most Architect candidates take 2-3 years to complete all the exams.  In the end, it thus takes an individual a minimum of 10-12 years to go from someone who dreams of becoming an Architect to someone who is fully licensed to practice Architecture and sign and seal drawings for construction.  In Texas and most states, in order to for one to call themselves an “Architect” or offer services that include any form of the word “Architecture,” one must be a fully Registered Architect.  By obtaining the status of a fully “Registered Architect”, the individual has demonstrated that they have the proper amount of educational and real-world experience to provide Architectural Design Services.  While most people think of Architecture as a purely aesthetic trade, there is a functional component that is only developed through this process of education, work experience, and examination.  Last, Architects are held to a higher standard to being able to protect the life, safety, and welfare of the public by understanding building codes and construction and how those decisions affect the end users.  Most Architects are members of the American Institute of Architects (AIA), and they are thus able to use the letters AIA behind their name to prove that they are a Registered Architect, however AIA in not required and is simply an organization of Registered Architects.  Even though one can be a Registered Architect without being a member of AIA, that organization has advantages and provides an added assurance to the Client that they are working with a fully Registered Architect.

Draftsmen typically may have had a few years of higher-level computer-aided design training, in comparison.  Designers are typically individuals who may have gone through the 4-year Bachelor of Architectural Studies program and graduated, they but never took the next steps to log the required work experience or take the registration examinations.  As such, they cannot call themselves “Architects” legally, but many portray themselves as such to Clients, whom many do not understand the difference or value in one vs. the other.  Last, Registered Architects must go through about (20) hours of continuing education hours each year to maintain their license, so that they are keeping up with their qualifications and learning new technologies and construction methods that are developed each year.  On the other hand, Draftsmen and Designers are not required to go through any continuing education year by year.  Essentially, anyone can just open up a business and call themselves a Designer, which can be scary to think about when it comes to a field that requires the expertise needed for the design of construction projects.

Most new homes and remodel/addition projects built in Texas have design services performed by Non-Architect Designers who market themselves directly or indirectly as being equivalent to Registered Architects.  As an Architect-Led Design Build firm, TexMod Homes firmly believes that any project involving Design Services should be performed by an individual who has gone through all the required steps to prove themselves as qualified to perform those Design Services to the Client.

When evaluating the potential ways that professionals – whether they are Architects, Designers, or Draftsmen – produce drawings to convey their design intent, it is important to understand the different types of Drawings that these individuals may provide.

Builder’s Set of Drawings

Designers and Draftsmen typically provide what is referred to as a “Builder’s Set of Drawings”.  This typically includes a basic site plan, a dimensioned floor plan, a roof plan, exterior elevations, an electrical plan, and sometimes (but not necessarily a structural foundation plan).  Typically, the Client or General Contractor is responsible for hiring their own structural engineer to provide the foundation plan and details after the Builder’s Set of Drawings have been completed by the Designer or Draftsmen.  The purpose of the Builder’s Set of Drawings is to convey enough information for a residential construction project such that a permit can be obtained from a jurisdiction and construction can commence.  

Unfortunately, in a Builder’s Set of Drawings, there are many drawings and details that are left out from the set.  These absent drawings and details which can be critical to conveying the design intent – include interior elevations, window and door schedules, fixture and finish selections and/or specs, building and wall Sections, and more detailed plumbing, HVAC, and electrical plans.  With a Builder’s Set of Drawings, all of the missing information must be left to the imagination of the General Contractor or Client, which can be time-consuming to figure out during construction as well as create a disorganized overall design in the end where all the specific details of a project are not consistent.

Full Set of Architectural Drawings

Registered Architects typically produce a Full Set of Architectural Drawings, in which there is a more comprehensive approach to creating the set of drawings that go into more detail than simply what is just required for a building permit.  The Full Set of Architectural Drawings convey complete design intent by providing precise measurements, material specifications, and coordination between consultant disciplines.  In the end, there is little left to the imagination, and in a well-crafted set of Full Architectural Drawings, two different General Contractors should be able to produce apples-to-apples bids on projects, since all of the information necessary to construct the project has already been defined and delineated.   

The Full Set of Architectural Drawings must be so specific that it succeeds in conveying full design intent because the Architect in a traditional Design-Bid-Build project delivery method will not be intimately involved in the day-to-day construction, so his ideas must be fully detailed on papers for others to utilize vs. having to interpret through their imagination.  The Full Set of Architectural Drawings vs. the Builder’s Set of Drawings is preferred because it is superior is accuracy and clarity while going through a system of quality control and collaboration, before the final Full Set of Architectural Drawings is signed and sealed by a Registered Architect.

Hybrid Set of Builder Architectural Drawings

As an Architect-Led Design-Build firm, since TexMod Homes is integrally involved in the Design and Construction from beginning to end, we do not have to produce a Full Set of Architectural Drawings for every project.  What we do produce is a more detailed drawings than just a “Builder’s Set of Drawings”, and this is what sets us apart from typical traditional Design-Build firms.  While executing the construction of our own design drawings, we don’t need every single detail on paper, but we do need to have enough information so that our subcontractors can perform their work, and we can coordinate all the details of a project into a cohesive manner.  

We call our typical set of drawings that we produce a “Hybrid Set of Builder Architectural Drawings”.  In some instances, there are details drawn that resemble exactly what one might see in a Full Set of Architectural Drawings.  In other circumstances, the details and drawings more resemble a typical Builder’s Set of Drawings.  In the end, it comes down to the complexity of the project and what design intent needs to be conveyed to the Client for approval, the jurisdiction for permit approval, and our subcontractors for construction.  Each project is unique, and each deserves its own solution when it comes to the drawing set.  TexMod Homes feels that by providing a more advanced Builder’s Set of Drawings that incorporate the interior elevations, building sections, door/window schedules, and finish/fixture selections that are missing from the typical Builder’s Set of Drawings, that we deliver added value and service to the Client that goes through our Design Process.  In conclusion, the “Hybrid Set of Builder Architectural Drawings” is intended to be TexMod Homes’ set of drawings that they will use to complete the construction of the design that has been completed through the Design Phase.

Instruments of Service are the Drawings, Specifications, and other documents prepared by TexMod Homes and include any initial design sketches, renderings, and refined Concept Design or Schematic Design Drawings up to the Hybrid Set of Builder Architectural Drawings.  They are for the exclusive use of and with respect to constructing the Project at the specified site identified in the Proposal for Architectural Design Services, and they will remain the property of TexMod Homes until the Construction Services Phase Agreement is signed.  

Architectural drawings produced through the Architectural Design Services Phase will be marked “Preliminary Design Document - Not for Regulatory Approval, Permitting, or Construction”, as required by TBAE for in-progress drawings.  If at the end of the Architectural Services Phase, the Client chooses to not engage TexMod Homes to construct the project, then the Client will be entitled to a PDF version of the final set of Design Drawings.  If the Client chooses another Contractor to construct the project and wants to use the current set of design drawings for permit and construction, then TexMod Architecture will, as needed, complete the Hybrid Set of Builder Architectural Drawings or Full Set of Architectural Drawings, and then they will sign and seal those drawings as required for City Permit Approval – for an additional fee to be discussed.

If the Agreement for Design Services is terminated for any reason prior to the completion of the Architectural Design Services Phase, then TexMod Homes will provide the Client with a PDF set of drawings to date, marked “Preliminary Design Document - Not for Regulatory Approval, Permitting, or Construction”, upon receipt of final invoice for Client to use as they wish, but TexMod Homes cannot sign and seal incomplete drawings.

Upon completion of the construction of the Project, the TexMod Homes grants the Client a license to use the Architect’s Instruments of Service as a reference for maintaining, altering, and adding to the Project.  The Architect shall retain all common law, statutory, and other reserved rights, including the copyright.  The Architect shall be the sole owner of all cad drawings and will not release them for use on this Project without a signed Cad Disclaimer. 

We spend our time working on site quite a bit, so we like to stay close to the Southlake, Colleyville, Grapevine, Trophy Club, and Westlake areas to ensure our clients get the best service.  Occasionally, we will take on projects outside that radius (Flower Mound, Argyle, HEB, Coppell, and even Dallas – but with the amount of time spent working directly with the clients and managing the day-to-day operations of construction, being close and available to the jobsite is important.

Because of the size of our small, boutique firm – in order to provide each Client with the best possible service and attention to detail, we unfortunately cannot take on every potential project where we receive an inquiry.  We sometimes have to be choosy on which projects that we undertake.  First, we establish whether the project will be a good fit for both TexMod Homes and the Client through the initial phone calls and meetings.  Second, even if a project is a good fit between us and Client, it must fit into the schedule expectations for the Client.  Many times, the Client will wait for us to finish a project first before we are able to put the same effort into their project that we are currently putting into our existing projects.  We will always be upfront and honest and not choose to take on a project that we know that we cannot execute in the expected timeframe of the Client.  

With that being said, we can typically design and construct 1 new home, 2-3 additions or major remodels, 2-4 kitchen remodels, and 6-8 bath remodels within a calendar year.  Additionally, we are able to perform the Architectural Design Services phase for 3-4 new potential projects at a time, while still performing the construction activities on the projects currently under construction.  While it can sometimes be a juggling act, the schedules of projects seem to always work themselves out over the years, and we have never had a project be significantly delayed or not able to execute because of the number of projects that we had committed.

Sometimes, we will perform the Architecture for a project for a client in an area further away than we typically build for another General Contractor to build or when the Client is also a General Contractor himself, and he wants to construct the project himself.  We prefer, however, to lead both the Architectural Design and Construction through the Architect-Led Design-Build project delivery method.

The Architectural Design Phase on a project can take anywhere from 1-2 to 3-6 months, depending on the complexity of the project and how quickly the Client is able to make decisions.  As part of the Client reviewing and signing the Proposal for Architectural Services, TexMod Homes will advise the Client on the potential timeframes for Design and Construction, which may vary based on how busy that we are at the time and how quickly the Client wants to begin construction.  Once we commit to providing you Architectural Design Services, we will do our best to work on your project in a timely and efficient manner.  Many times, the Concept and Schematic Designs can occur quickly, and the Client meetings can be very productive where we proceed from one phase to the next quickly and seamlessly, but other times the Client needs time to mull over designs and decisions.  The Bidding Phase of the Architectural Design process can also sometimes be time consuming depending on the complexity of the project, which also affects the overall Design timeline.  Almost always, the Client in the end is driving the pace of the Design Process and it takes place in the appropriate time as required.  

While this Design Phase may seem excessive to some Clients, we believe that it is important to commit to progressing through all of our pre-defined processes so that the eventual construction goes smoothly.  There is a school of thought that has been tested successfully in multiple industries that for every hour of work that is spent in “Design” or “Planning”, 2-3 hours is saved during “Construction” or “Production”.  We have found this to definitely be true in our line of work in design and construction.  In the end, the timeline required for Design and Construction of the Client’s project is the same whether more or less time is spent in Design – the difference being the more time spent in Design the less time that is spend during Construction.  From the Client’s perspective, being out of their house or space for an extended period of time during construction because of poor (or lack of) planning during Design is unacceptable.  At TexMod Homes, we are not the firm that believes in just start taking a hammer to the project and design and build as you go along.  Our philosophy is the opposite – productive and sufficient planning during Design is paramount to a successful Construction project. 

When it comes to construction, the timeline is also heavily determined by the scope and complexity of the project.  A small bathroom remodel may take 4-6 weeks to complete, a kitchen remodel may take 6-9 weeks to complete, and a full-scale remodel or addition may take 6-9 months to complete.  For new construction, 9-12 months is an appropriate timeframe for a typical 3,000 – 5,000 SF home.  The determining factor in any type of project are the tasks that have to occur and the order in which they must be completed – which is referred to the critical path of construction activities.  In the Proposal for Construction Services, TexMod Homes will estimate the Project Schedule so that they Client is fully aware of the commitment and will create a “Preliminary Project Schedule” for the Client to review before the Agreement is signed.  Unfortunately, sometimes product or labor delays do occur, or the world is shut down like in 2020 – but in those rare instances, TexMod Homes will always keep the Client updated on any substantial changes in the Project Schedule.

Most of the time, work is continuously occurring on the project from start to finish with a few float days in between subcontractors to provide for those instances that may occur not as scheduled.  At the end of the project however, there are items such as countertops and shower glass where those items can’t be measured until the substructure of the cabinets and shower is built, and then there is a 7-10 day turn-around for them to be fabricated before they can be installed.  In those instances, however, we are usually able to schedule other activities such as painting, finishing out electrical, or other detail or clean-up work while we wait on those other items to be ready for installation.

Many General Contractors will give free “bids” or “quotes”. Unfortunately, due to the uniqueness and complexity of each project that is required to properly understand a Client’s project, produce the required design documents and meet with the Client, discuss and coordinate your project with our subcontractors, and produce a “Fixed Fee Construction Proposal”, we cannot give out free “bids” or quotes”. There is a significant amount of time that TexMod Homes invests in each potential project, and that time and effort deserves to be compensated through the Architectural Design Phase – where a design will be produced, and a Fixed Fee Construction Proposal will be presented at the conclusion of that process. In order for us to perform our work with the highest quality and attention to the Client, the Client must have some “skin in the game.”

During the initial email inquiry, phone call conversation, or site visit, TexMod Homes can typically estimate a ballpark range for what a project should cost based on our previous experience with the particular type of project. That would be considered a free “estimate”, but it is just a ballpark range until we can actually dive into the project through the Architectural Design Phase. For many projects such as a small bathroom remodel, we will have just completed a very similar project and can give the Client a much better estimation of construction cost, with differences being just the level of finishes from one project to the next. Many of our projects, however, are so complex or have unique site constraints that it becomes difficult to give an accurate estimate of cost before starting design on the project.

In the Proposal for Architectural Design Services, the design fees associated with the specific Design Phases will be outlined as either a fixed fee or an hourly (not to exceed) fee structure depending on the complexity of the project.  As an Architect-Led Design-Build firm, TexMod Homes believes that a well-trained Architect should be in charge of all Design, and that their expertise and training deserve to be compensated accordingly.  In our Architect-Led Design-Build project delivery method vs. a typical Design-Bid-Build project delivery method (where the Client hires a separate Architect and General Contractor), we do not need to fully detail every aspect of design in order to create the construction budget or convey design intent to a third party who would be building the project.  As such, we can save the Client significant cost during the Design Phase by not having to overdraw or detail excessively.

Typically, TexMod Homes determines a fixed fee for Design Services based on the anticipated number of hours and effort that will be required to solve the design problem, present those ideas to the Client, and communicate those details to the Authority Having Jurisdiction to obtain a building permit.  Typically, Design fees can range anywhere from 3-8% of the anticipated construction cost, depending on the complexity of the project and if any consultants are included as part of the Design Services fee or not.  The fees for Design are staged according to each phase so that the relationship can be re-evaluated by the Client at each step of the process.  In comparison, the typical design fees from a traditional Architectural firm who develops a design for a Client and gives them a set of drawings for General Contractors to bid could easily be as high as 10-15% of the anticipated cost of construction, and in most cases are not as aware of how much the construction will actually cost for that design.

If at any time the Client does not feel comfortable in the direction that the design process is heading, then we can part way amicably, and the Client would just be responsible for the cost of the design services rendered up until that time.  Design fees in the Proposal for Architectural Design Services are sometimes indicted as a “retainer” towards the final construction cost.  Whatever fee that is spent during design goes towards the Construction cost if TexMod Homes is ultimately approved to proceed into the Construction Phase at the conclusion of the Design Phase.

How much should a project cost is a typical question that is asked by Clients, with the most popular question being how much does it cost per square foot to build?  Unfortunately, that is also the most difficult question to answer.  The public perception of that question comes from the real estate industry where the $/SF variable is how most real estate transactions are described.  When considering new homes, one of the problems is that existing home sales cost per square foot are based on conditioned, livable space only – while new home construction costs must consider not just the conditioned livable space, but the garage space, covered exterior living spaces such as patios, balconies, and porches, and landscaping and sitework.  When constructing these spaces, there are actual dollars that must be spent to build vs. when one buys an existing house – the land, site elements, garage space, and covered exterior spaces are absorbed into the total price of the property.

Each new home is also not created equally.  There are varying levels of quality that can be used for materials and labor for items such as the foundation, windows, doors, hardware, fixtures, appliances, insulation, plumbing, electrical, HVAC, smart home options, etc…. Every decision affects the cost with some decisions adding to the cost some decisions saving you money.  There are also several unique ways which we construct items behind the walls that one may not see but adds to the cost of construction.  TexMod Homes believes that what gets built behind the walls is just as important or sometimes more important than the finishes that are seen in the end.  Items which affect energy efficiency, moisture protection, structural stability, and longevity of the home are items that are often not seen to the naked eye but are appreciated many years down the road as the Client lives in their home.  

TexMod Homes believes in constructing homes and remodeling spaces that are built to last, which is why it is difficult for us to “flip” homes.  With a “flip home”, the General Contractor’s main objective is to maximize profit by buying the property at the lowest price, doing the least amount of work as possible using the cheapest materials needed to dress up a space, performing the work in the shortest time possible, and then selling the “flipped” house for the highest price possible.  While our work definitely appreciates in value over time, in many cases such as remodeling an existing space – the value of that cost to do the work is appreciated by the Client living in and loving their new space and not it being able to quickly turn around and re-sell it.

For new construction, the typical cost of our construction is $250-$400 per SF of actual structure built on a foundation, including conditioned space, garages, and covered outdoor spaces, and not including the price of the land or site development costs such as driveways, landscaping, pools, etc..  That means that a new home that is between 3,000 SF and 5,000 SF could cost anywhere from $900,000 to $2.5-$3 million dollars for just the structure of the home.  For remodels, our typical costs for a small Bathroom may range from $20-30k, a Master Bath from $75-150k, a Kitchen from $100k-$300k, and an addition from $250k-$500k+.  With remodels, there is an added significant cost in going backwards and performing demolition first before being able to go forward with new construction.  

One of the most important things in construction is knowing your budget.  As an Architect-Led Design-Build integrally involved in both Design and Construction, TexMod Homes is able to adhere to or help to develop the proper budget for your project.  There is a three-legged stool analogy in construction that says that Scope, Quality, and Budget must be kept in accord.  If one of those three is unequal in either direction (high or low), then there may be potential issues with the work requested vs. the actual cost of the work.  In order to save money, one of those items must be sacrificed for one or two of the others.  To create a house or space that appears in harmony, all three must be balanced.  During the Design Phase, when the Construction Cost Estimate is higher than expected, then we are able to provide the Client with practical and reasonable ways to reduce cost and bring the project back into budget.  Sometimes that means reducing the area or scope of construction, while other times it is simply altering the quality of the finishes.  Occasionally, we have been able to give Clients suggestions on how to stage construction so that part of the project can be built now, and the rest of the project be built later – but in the end it all looks like it was built together.  In the end, there are definitely ways to be creative to work on a project within the Client’s budget.  The benefit of the multi-stage Design Process by an Architect-Led Design Build firm like TexMod Homes is that there is time during Design to backtrack if necessary before completing design because we are always thinking about cost as we design.

In remodels large and small, however, then there could also be unforeseen conditions that arise in remodels if the space hasn’t yet been opened up or there are no existing drawings available – such as an unknown structural support in the middle of a wall to be opened up or a plumbing stack in place where you wouldn’t expect it.  Those instances add cost to the project, and when they are not known ahead of time during Architectural Design, they are costs that aren’t included in the Fixed Construction Fee and must be passed onto the Client during construction when they occur.  a lot of times there are unforeseen conditions can be mitigated by coming up with alternative solutions in the field once they arise.  But that is one reason why it is good for the Client to have a contingency in place in addition to the Construction Cost.  Typically, a 5-10% contingency based on the size and complexity of the project is sufficient to fend off an extra costs that are behind our ability to realize or estimate during the Design and Bidding phases.

There are two main methods that builders use to charge for construction services, which are either a Fixed Fee or a Cost-Plus contract.  Each has their own advantages and disadvantages for both the Client and the Builder.

Fixed Fee Cost of Construction Agreement

In a Fixed Fee Construction Cost arrangement, the General Contractor proposes a set price for a defined scope of work, which is detailed through drawings, specifications, and written descriptions.  With a Fixed Fee Construction Cost, the General Contractor must spend a significant amount of time upfront gathering bids from the various subcontractors and material vendors, but once the fee is set and agreed to by all parties – the cost of construction doesn’t change unless the Client chooses to added additional scope of work through change orders or overages on allowances, or for unforeseen conditions that could not have been known at the time the proposed fixed fee was produced (in which case the builder would prepare a change order for the Client to sign).  The Fixed Fee Construction Cost arrangement is an advantage to the Client because he knows exactly how much the project is going to cost in the end, and the Client is able to control if that cost goes up or down.

Cost-Plus Construction Agreement

In a Cost-Plus fee arrangement, the General Contractor charges the Client for the exact cost of the work and materials provided plus an additional fee which is a % of the cost of the work and materials and is to be considered the builder’s profit.  In a Cost-Plus fee structure, the General Contractor’s % fee may range from 10-30% or more depending on the size and complexity of the project.  An advantage for the Client of the Cost-Plus fee arrangement is that the construction schedule can be speeded up by not having to wait for every subcontractor or vendor to supply his pricing.  Another advantage is for Clients who want to know exactly where every penny that they spend is being used.  A major disadvantage of the Cost-Plus fee structure, however, is that it incentivizes the General Contractor to potentially use more expensive subcontractors and materials or take longer to construct the project because he can make more profit by running up the cost.  Clients should also be weary of the Cost-Plus fee structure because they will never truly know how much the project is going to cost until it has been completed.  The General Contractor’s  advantage to a Cost-Plus fee is that any errors that they had in estimating or cost overruns are covered, but this creates the environment for the builder to be sloppy and not efficient during the Bidding Phase.  A disadvantage to the Cost-Plus fee structure for the General Contractor is that he must be meticulous in keeping up with receipts and invoicing can take an excessive amount of time that could otherwise be devoted to the project.

TexMod Homes Construction Cost Proposals

While there are advantages and disadvantages of both fee structures, TexMod Homes prefers to use the Fixed Fee Construction Cost method.  As an Architect-Led Design-Build firm, we spend many hours during design talking with subcontractors and material vendors, so we should have a pretty good idea of what the work should cost.  There have been a few times in the past when we have used the Cost-Plus fee arrangement, but that is a rarity today.  It has only occurred when the project needed to be started right away when we were first contacted, and the Client was more than confident that the money was available to construct the project to completion.  Other times when we have used a Cost-Plus fee arrangement was for an insurance rebuild, because the insurance company needed to be kept aware of all the costs that were required to rebuild the project. 

TexMod Homes believes that the Fixed Fee arrangement is also the fairest to the Client, because it takes their worries away from the money portion of the project and allows them to concentrate on other discussions and decisions which will need their input during construction.  In the end, the risk of a Fixed Fee Cost of Construction should lie with the General Contractor.  He is the one who is supposed to be the expert and is delivering the project.  Therefore, if the builder is experienced and intimately involved in the work, he should be able to put together an appropriate Fixed Fee Cost of Construction to present to the Client.  TexMod Homes provides this to the Client at the end of the last Design Phase meeting – when all of the design decisions have already been made (or allowances accounted for), and the project is ready to move forward into construction pending approval and signatures from the Client.

The Fixed Fee for Construction Services Proposal commonly contains provisions for allowances for fixtures or finishes which may not have yet been selected during the design phases.  While ideally, everything would be selected in full during design, many times we must only specify the quality of the items to be incorporated into the project.  During construction, there is ample time to make these final selections.  For those items, the Fixed Fee for Construction Services Proposal will provide a $ amount allowance for a specific fixture, finish, or service.  During construction, if the actual price of the item is less than the allowance, then the Client will be credited the difference back to them.  If the actual cost of the allowance item is more than indicated in the Fixed Fee Construction Proposal, then TexMod Homes would be entitled to an additive change order for the difference in the allotted price, plus an additional % GC Fee as stipulated in the Fixed Fee Proposal for Construction Services.  This additional % GC fee can be as little as 20% to as great as 30% depending on the complexity and uniqueness of the project, but that amount will be fully disclosed and stipulated in the Fixed Fee Construction Proposal.

Change Orders occur when the Client chooses to have TexMod Homes perform additional work than what was originally designed and outlined in the Fixed Fee Construction Proposal or is for work that needed to be completed but was an unforeseen condition during the design and bidding phases.  For any design changes in the scope of the work, TexMod Homes will be entitled to a change order for additional compensation for design and construction for any scope of additional work as directed by the Client.  Prior to commencing with the additional work, TexMod Homes will notify the Client of the estimated cost of the additional design and construction services requested – as an Fixed Fee addendum to the already agreed upon Construction Fixed Fee for the base scope of work.    Except as otherwise stated in Fixed Fee Construction Proposal, all change orders must be approved in writing by TexMod Homes and the Owner, which may include an email and/or text message in lieu of a written Change Order addendum.

If the Client directs TexMod Homes to proceed with the work before an additional fee can be determined or agreed, then we will be entitled to a fee of the actual cost of the work (backup receipts to be provided) plus an additional % GC Fee as stipulated in the Fixed Fee Proposal for Construction Services.  As with allowances, this additional % GC fee can be as little as 20% to as great as 30% depending on the complexity and uniqueness of the project, but that amount will be fully disclosed and stipulated in the Fixed Fee Construction Proposal on a project-per-project basis.  In addition to the extra construction costs, TexMod Homes would also be entitled to extra design fees for drawings that need to be created or revised to complete the Change Order.  The extra design fees would be presented to the Client before TexMod Homes commenced on the extra design work, or they would be stipulated per the hourly Additional Design Fee Schedule in the Fixed Fee Construction Proposal should the Client direct TexMod Homes to produce extra design services before agreeing on the scope of the extra work.

Preferably, all work to be completed on a project is fully anticipated and drawn and specified during the Architectural Design Phase, but that is unfortunately not the case.  Usually, Change Orders are Client-directed because they like the work that is being performed and wish to add additional scope vs. unforeseen conditions that pop up during construction.  Change orders sometimes get a bad rap, but they are a typical part of the construction process, and they can cause little conflict or confusion if all parties understand the implications of them from the beginning, can set expectations accordingly, and all can be documented and justified through the Fixed Fee Construction Proposal.

To complete the Design process drawings for permit and construction, on many projects we need to retain the services of Design Consultants who are experts in their respective fields.  As an Architect-Led Design-Build firm, TexMod Homes is experienced in working with and coordinating these design consultants.  The following consultants are typically needed, depending on the type of project.  The way that these consultants will be engaged by TexMod Homes is described in the Proposal for Architectural Design Services and approved by the Client before starting them on their respective work.

TexMod Homes suggests engaging these consultants midway through the design process in the Design Development phase, after the Preliminary Construction budget has been established and approved by the Client.  This will ensure that the design phase schedule progresses as planned without significant delay, and the final drawings will be ready to submit for permit at the end of the design process.  Occasionally, the Client will want to wait to retain these consultants as part of the Construction Services Phase, but their expertise in helping with Design by engaging them early can help the overall project’s scope and budget, thus saving the Client money in the end.

For new homes and additions, the following consultants are typically always needed:

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  Geotechnical Engineer

  
  

The Geotechnical Engineer will perform a soils boring by visiting the site with a boring rig, obtaining soils from the ground, and sending to soils to a testing lab to analyze the soils to determine the proper bearing capacity of the dirt and give recommendations to the Structural Engineer on the best way to design the foundation.  This is a crucial element in the design process for new structural foundations and is required by almost every jurisdiction in North Texas because our soil properties can vary greatly from site to site.

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  Structural Engineer

  
  

The Structural Engineer will rely on the Geotechnical Soils Report to design the concrete foundation, which may be a slab on grade, footings, piers, and grade beams.  The structural engineer will also design the ceiling framing, roof framing, and wind bracing wood elements that will hold the structure together.  In addition, if there are any steel or concrete beams required for the project, the Structural Engineer will design those elements.  

While Registered Architects are trained in structural design, they are not licensed to create those plans for construction.  Architects have enough training and experience to be able to coordinate the two trades together, but the Structural Engineer has the ultimate expertise to design for the unique soils conditions that North Texas possesses.

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  Surveyor

  
  

The Surveyor is a necessary consultant on new homes and addition projects.  The surveyor is first responsible for creating an existing site plan to show any existing structures, trees and vegetation, utilities, utility easements, building zoning setbacks, and existing grading of the site.  This site design is essential to the Architect to complete design when the existing site is not completely flat, which is pretty common.  

Once construction begins, the Surveyor is needed to confirm that the form boards are set in the correct place before the jurisdiction will allow concrete to be poured to ensure that the new home or addition will not protrude over any city building setbacks or utility easements.  

At the end of construction, the Surveyor is recalled once more to visit the site and perform a final survey to create a site drawing that shows the new structure and new grading to ensure that water will drain away from the structure properly to where it will be discharged to grade or connect to the city stormwater system.  The final survey is typically always needed to obtain final building inspection approval.

The following consultants are sometimes needed for new homes, additions, and remodels – depending on the complexity of the project, the requirements of a specific AHJ, or at the Client’s request:

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  MEP Engineer

  
  

The MEP Engineer will design the HVAC system by analyzing the heating and cooling loads for the project – taking into account any existing structures, the orientation of the house, and the interior special conditions.  He will recommend the proper HVAC equipment for air conditioning, heating, and ventilation – sizing the heat pumps, condensers, air handlers, ductwork, and supply registers and return grilles.  

The MEP Engineer can also design the electrical panel loads, circuitry, and lighting controls.  Last, the MEP Engineer can design the underground plumbing and how it connects to the city sewer and water lines or a septic system if city utilities are not available at the site.  Most of the time, the various Mechanical, Electrical, and Plumbing subcontractors are fully capable of designing their components in the residential world of construction, so the MEP Engineer can be thought of as a luxury consultant but is sometimes warranted and necessary depending on the complexity of the project.

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  Civil Engineer

  
  

The Civil Engineer is another luxury consultant that is sometimes needed on more complex new homes and addition projects.  He is an expert in public utilities, site grading, stormwater management, paving design, and retaining wall design.  

Like dealing with the Structural Engineer, a Registered Architect is trained to be able to communicate and coordinate these design services with the Civil Engineer, but the Civil Engineer possesses more skill and expertise that is sometimes warranted and necessary depending on the complexity of the project.

The following consultants are usually not necessary unless the Client requests them to be part of the Design Team:

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  Landscape Architect

  
  

The Landscape Architect is responsible for designing the exterior elements for a site, including hardscape/paving, trees, vegetation, sprinkler systems, and sometimes pool design.  These design services are typically provided by the subcontractors responsible for the respective work, but utilizing the expertise of a Landscape Architect during the design or construction phase can really bring the whole project together, especially on larger projects or in unique situations.

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  Interior Designer

  
  

The Interior Designer is a specialty consultant responsible for material, color, fixture, furnishings, and equipment selections.  Many times, a client will have an Interior Designer that they have worked with in the past that understands the Client’s style, and the Client will want them to assist in the Design Phase to further define the details of those elements.  A Registered Architect can do everything that an Interior Designer can do, and TexMod Homes typically performs these Interior Design Services as part of their scope of Design work, coordinating with the Client to match or help define their style and integrate the interior selections with the Architectural elements as a whole.

Like Consultants, TexMod Homes’ group of subcontractors are integral in the Construction phase. These are the guys that will construct every little detail of the project that is envisioned during the design phase.  As an Architect-Led Design-Build firm, TexMod Homes is able to coordinate and communicate the design intent easily and effectively to the subcontractors because we are involved in the project from the beginning of Design to the end of Construction.

Our subcontractors are trustworthy, experienced, know what is expected before they begin the work, and most importantly – they each take pride in their respective trades.  By using the same set of subcontractors vs. bidding out different ones for each job, our subcontractors have grown to know how style and what is expected.  The different trades have also built relationships working alongside each other, and they commonly will bring to our attention a potential issue that may be unrelated to the specific work that subcontractor is working on but could impact other subcontractors or the project as a whole. 

License to Perform Construction

Believe it or not, in Texas, there are not any licensure requirements in the state for General Contractors or Builders.  Literally anyone can open up a business and call themselves a General Contractor, much like someone can do as a Designer vs. a Registered Architect.  While the lack of regulation may seem to be a positive for business, Clients must be more diligent in checking on the credentials and references of potential builders to ensure that they are hiring someone who is ethical and will be able to competently construct their project.  In Texas, the only subcontractor trades that are required to be licensed are Electricians, Plumbers, and HVAC installers.  It is imperative for the Client to make sure that their builder is only using those trades that are licensed as required.  

While there may not be licensure for General Contractors in Texas, most legitimate ones belong to at least one or more professional organizations that meet to discuss current issues, new products, and provide some continuing education.  TexMod Homes is currently a member of NARI North Texas (National Association of the Remodeling Industry) and has been a prior member of the DBA (Dallas Builders Association).  As the Architect component of TexMod Homes, Marc is a fully Registered Architect in Texas by TABE (Texas Board of Architectural Examiners) and is a member of several Architectural professional organizations, including AIA (American Institute of Architects), TSA (Texas Society of Architects), and the ICC (International Code Council).

General Contractor Insurance Requirements

Additionally, in Texas, a General Contractor or Builder is not specifically required to carry insurance, either – though they absolutely should, and the Client should verify that their General Contractor is indeed insured before allowing them to perform construction at their home.  This means that any potential damage, either directly or indirectly, that may occur at a jobsite is covered so as to put the Client’s mind at ease.  TexMod Homes carries both General Liability Insurance for the protection of property and/or bodily injury as a result of work incurred while working at the Client’s property during both the Architectural Design Phase and the Construction Phase – including completed operations, which protects the Client for work that was done on a project but where damage may not be evident until after the contractor has completed the project and left the jobsite for good.

TexMod Homes’ subcontractors also carry their own General Liability Insurance policies covering their specific work.  In most cases, a General Contractor’s General Liability only covers subcontractors who are also insured, but TexMod Homes has a unique CGL policy that will also cover their subcontractors should one of them happen to have a lapse in their coverage.  Furthermore, on addition and/or large remodel projects (especially projects where the Clients move out of the house), TexMod Homes purchases project-specific Builder’s Risk insurance policies.  These insurance policies work similar to a typical Homeowners’ insurance policy that the Client would already have on their home to cover natural events like storms, wind, and hail, but they also cover theft of construction materials or products stored at the construction site during the project.  If the Client is not currently occupying their premises, then most Homeowners’ insurance companies include stipulations that their policies exclude coverage during construction that occurs while the Client is away.  Thus, the Builder’s Risk Policy is crucial to mitigate risk in those instances.