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TRINITYInvestee · LLC
Insights
Contracts & Transparency· 5 min read · January 15, 2025

Why We Only Work Fixed-Fee

Cost-plus contracts protect the contractor. Fixed-fee contracts protect you.

Trinity hard hat resting on architectural blueprints

If you have ever received a construction bid and wondered how the final number ended up 30% higher than the estimate, you have experienced cost-plus contracting firsthand. It is the default model for most of the industry, and it is structured in a way that benefits the contractor, not the owner.

We do not work that way. Every project we take on is priced with a fixed fee — one number, agreed in writing before a single footing is poured. Here is what that means in practice, and why we believe it is the only honest way to build.

What Cost-Plus Really Means for You

In a cost-plus arrangement, you pay the contractor's actual costs — labor, materials, subcontractors — plus a percentage markup as their fee. On paper, it sounds transparent. In practice, it means your contractor has no financial incentive to control costs. Every dollar spent on the project increases their fee.

We have seen projects balloon by hundreds of thousands of dollars under cost-plus structures. Not because the contractor was dishonest, but because the contract gave them no reason to push back on an expensive subcontractor, negotiate a material price, or find a smarter way to sequence the work.

[PLACEHOLDER: Add a specific example or client story that illustrates this — anonymized if preferred.]

Why Fixed-Fee Requires More Work Upfront

A fixed-fee contract only works if the scope is defined precisely before you sign. That is harder than it sounds, and it is work that most contractors skip because it is unpaid. We spend significant time in pre-construction — reviewing plans, walking the site, coordinating with engineers and designers — so that by the time we give you a number, we know exactly what we are committing to.

This is where our process earns its value. The pre-construction phase is not a formality. It is where we identify the unknowns, price the contingencies honestly, and make sure both sides have the same picture of what is being built.

[PLACEHOLDER: Describe your pre-construction process in more detail — how long it takes, what deliverables the owner receives, etc.]

What You Should Expect From a Fixed-Fee Contract

A well-written fixed-fee contract should specify exactly what is included and what is not. Change orders exist, but they should be the exception — triggered by genuine scope changes, not by surprises that should have been anticipated in the estimate.

Our contracts include a detailed scope of work, a clear change order process with pricing agreed upfront, and a schedule with milestone payments tied to completed work, not calendar dates. You should always know where your money has gone and what comes next.

[PLACEHOLDER: Add any specific contract terms or protections you offer that differentiate Trinity from competitors.]

The Bottom Line

Fixed-fee contracting is harder for us. It requires more discipline in estimating, more rigor in pre-construction, and more accountability on the job site. We believe that is exactly how it should be. When we commit to a number, we own the outcome.

If you are evaluating contractors and one of them cannot give you a fixed number, ask why. The answer will tell you a great deal about how your project will run.

Written by

Mena Nady

Founder, Trinity Investee LLC

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