Builder Compensation

When building a custom home, one of the most important early discussions with your builder will be about compensation. Two common types of agreements are Cost-Plus and Fixed-Price contracts. At American Villas, we offer a hybrid approach: a Cost-Plus contract with a Fixed Builder Fee. This structure ensures our clients receive a fair, transparent, and flexible arrangement.

Under this model, clients reimburse us for the actual cost of labor, materials, and subcontractor services—plus a fixed project management fee. Our fee remains constant unless there is a major change in the scope of work. This alignment of interests promotes cost control and trust throughout the process.

This structure provides:

• Full transparency into actual construction costs

• Greater flexibility to accommodate design or material changes during construction

• Lower builder fees, typically about half that of a fixed-price model, due to reduced risk

• Cost savings passed directly to the client—if costs come in under budget, those savings go to you.

We believe this model offers the best balance of fairness, flexibility, and transparency for custom home construction.