Fixed price contracts work great for cookie-cutter homes and simple builds. But unique architectural projects demand a different approach. 

Award-winning builder Stephen Mellinger shares his proven “cost-plus strategy” that's transformed his high-end residential construction business.

In this detailed episode of The Builders Ladder Podcast, Stephen reveals his exact approach to cost-plus contracts, including: 
The deposit approach that protects your final payment and maintains a positive cash flow in your building business
A practical way to structure project management fees 
The powerful alternative to “variations” that maintains better client relationships
A transparent invoicing system that builds trust while protecting margins

Stephen also shares critical insights on avoiding legal pitfalls, and why quantity surveyors are essential for million-dollar-plus projects.
 
Key moments:

00:02:15 - Types of projects best suited for cost plus
00:04:35 - Handling admin and project management fees
00:07:55 - How to structure payment claims and frequency
00:13:35 - Managing deposits and final payments
00:15:35 - How to handle margin transparency
00:21:15 - Including contingencies in labour rates
00:31:15 - Avoiding legal pitfalls and misrepresentation
00:33:15 - The importance of quantity surveyor estimates

Whether you're currently handling complex residential projects or considering your first cost-plus contract, this episode provides a practical roadmap for implementation. 

Stephen even shares specific strategies for maintaining margins while building trust with premium clients.

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Our construction business coaching has helped 2,500+ building companies succeed.

Subscribe to The Builder’s Ladder Podcast for weekly, actionable insights — tailored to help you grow a profitable construction business.

Follow TPB for more:

👥 FB Group – https://www.facebook.com/groups/professionalbuilder  
📸 Instagram – https://www.instagram.com/theprofessionalbuilder 
🖥️ Get your business health audit + free resources (including website audit) here – https://www.theprofessionalbuilder.com 

🚀 Head to https://tpb.tools/pod-call to book your FREE strategy session.
📈 Resources For Builders – https://tpb.tools/resources 

Fixed price contracts work great for cookie-cutter homes and simple builds. But unique architectural projects demand a different approach.&nbsp;
Award-winning builder Stephen Mellinger shares his proven &ldquo;cost-plus strategy&rdquo; that's transformed his high-end residential construction business.
In this detailed episode of The Builders Ladder Podcast, Stephen reveals his exact approach to cost-plus contracts, including:&nbsp;
<ul>
<li>The deposit approach that protects your final payment and maintains a positive cash flow in your building business</li>
<li>A practical way to structure project management fees&nbsp;</li>
<li>The powerful alternative to &ldquo;variations&rdquo; that maintains better client relationships</li>
<li>A transparent invoicing system that builds trust while protecting margins</li>
</ul>
Stephen also shares critical insights on avoiding legal pitfalls, and why quantity surveyors are essential for million-dollar-plus projects. &nbsp; Key moments:
00:02:15 - Types of projects best suited for cost plus 00:04:35 - Handling admin and project management fees 00:07:55 - How to structure payment claims and frequency 00:13:35 - Managing deposits and final payments 00:15:35 - How to handle margin transparency 00:21:15 - Including contingencies in labour rates 00:31:15 - Avoiding legal pitfalls and misrepresentation 00:33:15 - The importance of quantity surveyor estimates
Whether you're currently handling complex residential projects or considering your first cost-plus contract, this episode provides a practical roadmap for implementation.&nbsp;
Stephen even shares specific strategies for maintaining margins while building trust with premium clients.
-
Our construction business coaching has helped 2,500+ building companies succeed.
Subscribe to The Builder&rsquo;s Ladder Podcast for weekly, actionable insights &mdash; tailored to help you grow a profitable construction business.
Follow TPB for more:
👥 FB Group &ndash; <a href="https://www.facebook.com/groups/professionalbuilder">https://www.facebook.com/groups/professionalbuilder</a>&nbsp;&nbsp; 📸 Instagram &ndash; <a href="https://www.instagram.com/theprofessionalbuilder">https://www.instagram.com/theprofessionalbuilder</a>&nbsp; 🖥️ Get your business health audit + free resources (including website audit) here &ndash; <a href="https://www.theprofessionalbuilder.com">https://www.theprofessionalbuilder.com</a>&nbsp;
🚀 Head to <a href="https://tpb.tools/pod-call">https://tpb.tools/pod-call</a> to book your FREE strategy session. 📈 Resources For Builders &ndash; <a href="https://tpb.tools/resources">https://tpb.tools/resources</a>&nbsp;

Welcome to The Builders Ladder, for residential builders and construction business owners who want to fast-track their results, scale their construction company, and create a systemized, profitable construction business.

If you’re ready to free up your time, increase profit, and build a high-performing team, you’re in the right place.

Your host, Marti Amos, has worked with over 5,000 building companies globally over the last 19+ years through builder coaching and proven business systems. His mission? To help you climb the builder’s ladder and run a predictable, high-margin construction business.

Tune in to hear from industry experts and discover step-by-step strategies to become a strategic building business owner - and ultimately, achieve true wealth, time freedom, and financial freedom through your residential construction business.

Welcome to The Builders Ladder, for residential builders and construction business owners who want to fast-track their results, scale their construction company, and create a systemized, profitable construction business.
If you&rsquo;re ready to free up your time, increase profit, and build a high-performing team, you&rsquo;re in the right place.
Your host, Marti Amos, has worked with over 5,000 building companies globally over the last 19+ years through builder coaching and proven business systems. His mission? To help you climb the builder&rsquo;s ladder and run a predictable, high-margin construction business.
Tune in to hear from industry experts and discover step-by-step strategies to become a strategic building business owner - and ultimately, achieve true wealth, time freedom, and financial freedom through your residential construction business.

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