Cost-Plus Pricing Structure

At Walker Building Company, we operate under a Cost-Plus pricing structure, also known as Open Book. This type of contract means our client provides reimbursement for the cost of their project, plus a fee for us as the contractor. Many contractors using this structure charge their clients the cost plus a percentage of the cost, but we prefer to do costs plus a flat fee.

The final cost our clients pay for their project is the combined total of:

Actual Construction Costs include all of the materials and labor that go into a project. From the amount that the concrete sub charges to the cost of a door-stopper, we track every cost associated with the project via Buildertrend and Quickbooks. As subs and suppliers bill us, we then pass these costs on to the client.

Read our post All About Construction Costs for more on estimate vs actuals.

Fixed General Contractor Fee is how our business is compensated for the management of your construction project over the course of the Pre-Construction Phase, Construction Phase and Post-Construction Phase. This fee covers our business' overhead items like insurance, licenses, bonds, fuel, tools and equipment, office supplies, software and admin; our own paychecks; and our business profit that is essential for growing and improving our company.

Sales Tax is based on the address of the project, and includes state and local sales tax. You can determine the sales tax rate for your location on the WA Department of Revenue's Tax Rate Lookup page. Because we have a reseller permit, subs and suppliers do not charge sales tax for the labor and materials on your project (aka actual construction costs), and instead we charge you sales tax on the Actual Construction Costs and General Contractor Fee on each invoice.