Why We Build Cost Plus

If you’ve never built a custom home before, you’ve probably heard the term cost plus and wondered what it actually means.

It’s one of the questions we get asked the most.

The simple answer?

Cost plus means you pay the actual cost of the work and materials, plus an agreed upon builder’s fee.

Instead of guessing what everything might cost months before construction begins, the project is built using real pricing as materials are purchased and work is completed.

So why do we prefer it?

Because custom homes, even remodels, change.

Even with the best planning, homeowners often decide they’d like to upgrade a light fixture, add built in shelving, choose a different tile, or make another change along the way.

With a traditional fixed price contract, those decisions usually turn into change orders, added paperwork, and unexpected markups.

With cost plus, the process is much more transparent.

Clients know what materials cost, where their money is going, and can make informed decisions throughout the build.

It also helps keep your budget where it belongs.

Many people assume cost plus means spending more money.

In our experience, it often helps homeowners stay closer to the budget they’ve planned because they can see the numbers as decisions are being made, not months later.

If one selection comes in higher than expected, it’s much easier to adjust another before the budget gets away from you.

Why lenders are comfortable with it

People are often surprised to learn that banks are very familiar with cost plus construction loans.

Because costs are documented throughout the project, lenders can clearly see where funds are being used as construction progresses.

It’s built on trust.

Cost plus isn’t the right fit for every builder.

It works best when there’s open communication, honest pricing, and a good relationship between the builder and homeowner.

That’s how we’ve always done business.

After more than 40 years of building homes along the Grand Strand, we’ve found that transparency leads to better projects, fewer surprises, and happier homeowners.

At the end of the day, our goal isn’t just to build a beautiful home.

It’s to make sure you enjoy the experience of building it.

Have questions about cost plus?

We’d be happy to walk you through how it works, explain construction financing, and help you decide if building a custom home is the right fit for your family.

Contact Destiny Custom Homes to schedule a consultation.