What homeowners should know about their next project contract.
If you’re planning a construction project in North Wellington County, Ontario, one of the biggest decisions you’ll make is choosing the right type of contract. The contract sets expectations for costs, timelines, and responsibilities—so it’s important to understand your options.
At V&M Construction, we specialize in Fixed Price contracts, but here’s a quick rundown of the three most common types used in the Mount Forest area:
1. Time & Material (T&M) Contracts
T&M contracts are based on actual labor and material costs. They’re great for projects where the scope isn’t fully defined, allowing flexibility as things evolve. However, because costs can fluctuate, careful budgeting is key. Many contractors in Mount Forest, Arthur, and Harriston use T&M for smaller projects or renovations.
2. Fixed Price (Lump Sum) Contracts
With a Fixed Price contract, the price is agreed upon upfront, so there are no surprises later. This works best for well-defined projects where both the contractor and client know exactly what’s involved. At V&M Construction, we only use Fixed Price contracts, giving our clients peace of mind with clear costs and expectations.
3. Cost Plus Contracts
Cost Plus contracts cover actual costs plus a set fee or percentage. While they offer flexibility, they require strict cost management. This type of contract is most commonly used for large custom homes and high-end builds in rural Ontario.
Choosing the right contract depends on your project’s size, budget, and level of certainty. If you’re in North Wellington County and looking for a reliable contractor, we’re here to help. At V&M Construction, we believe in clear pricing and quality work—no hidden fees, just great results.
