Cost Plus Pricing: How Open-Book Construction Works | Ogden Valley Builders
Cost Plus Pricing

How Cost Plus pricing works

You pay what the work actually costs, including site supervision at our actual cost, plus one guaranteed maximum fee we agree on before anything starts. Every bid, invoice, and change is open to you from start to finish.

The Basics

Two parts, both out in the open

On a Cost Plus contract, your project cost is made of two parts. There’s no third number tucked inside the bid.

The actual cost

What we pay subcontractors and suppliers for your project—labor, materials, permits, and equipment—billed at cost and backed by the real bids and invoices. Site supervision is its own line here, billed monthly at our actual cost with no markup.

Our fee

One guaranteed maximum fee (GMF), written into the contract before work starts. It changes only if the scope changes.

Your project cost

Everything you pay, tracked line by line in your JobTread portal as the project moves.

Cost Plus vs. Fixed Price

Where the difference actually shows up

A fixed-price bid gives you one number up front. That number still has to cover the builder’s markup and the risk of whatever they can’t see yet—you just can’t tell how much of each is in there.

Cost Plus with OVB Fixed-price bid
Builder’s markup One guaranteed maximum fee, written into the contract before work starts and changed only if the scope changes. Site supervision is billed at actual cost, with no markup. Built into the bid price
What you see Every subcontractor bid, material invoice, and receipt The total—usually not what’s behind it
Unknowns and hidden conditions Shown to you when they’re found and handled openly as a change, with options, before the work goes further Padded into the bid up front, or handled as change orders later
When a bid comes in lower The savings stay with you The difference usually stays with the builder
Design and selection changes You see the real cost of each decision before you make it Priced by the builder as a change order
Best suited for Custom homes, additions, and major renovations with real decisions and unknowns Simple, well-defined projects with little left to decide
What It Means for You

You stay in control of the budget

Open books don’t just show you where the money went. They let you decide where it goes, while those decisions still matter.

That’s why we build this way. The budget should protect the parts of the home you’ll live with for decades—structure, envelope, waterproofing, and mechanical systems—and you should be the one deciding where to invest.

See how the process works
  • The trade-offs are yours

    Want to put more into windows and less into tile? You see the real cost of both and make the call.

  • Budget guidance before design gets too far

    We price against your actual scope during preconstruction, with real bids, so the design and the budget stay lined up.

  • Surprises get handled in the open

    If we open a wall and find a problem, we stop, show you what we found, and walk through the options and costs before we go further.

  • Nothing gets added without your approval

    Every change is priced and approved by you before the work happens.

Planning Ranges

What projects like yours typically invest

These are the planning ranges we use in early conversations for projects in Weber and Morgan County. They’re a starting point, not a quote. Your real number comes from real bids against your actual scope during preconstruction.

  • Custom homes

    $250–$450+ per sq ft

    Often $500K to $2M+ for the structure, depending on size and finish level. Land and site work are extra.

    Custom Homes
  • Major additions

    $180–$400+ per sq ft

    $150K–$700K+ total, depending on scope and existing conditions. Dry additions, like garages, workshops, and storage spaces with little or no plumbing or finish work, often come in well below these ranges. Plumbing, kitchens, and baths are what drive cost per square foot up.

    Major Additions
  • Major renovations

    $150K–$800K+ total

    Driven by hidden conditions, layout changes, mechanical updates, and finish level.

    Major Renovations
  • Guest houses & cabins

    $200K–$650K+ total

    Driven by utility runs, septic or sewer, site access, foundation, and county requirements.

    Guest Houses & Cabins

What moves the number: site and terrain, foundation and structural work, utilities, windows and envelope details, and finish selections.

What’s in these numbers: the build itself, including site supervision and our fee. Land and site work are extra. Design and engineering are included when we run your project design-build with our partner designers; if you bring your own architect, those fees are separate.

Common Questions

Cost Plus questions

Is Cost Plus more expensive than a fixed price?

Not by nature. Either way, you’re paying for the work plus the builder’s markup. With Cost Plus, the markup is one guaranteed maximum fee written into the contract, and the costs are open. With a fixed price, the markup and any padding for risk are inside the number, where you can’t see them.

Will I know what the project costs before we start?

Yes. During preconstruction, we build a detailed budget from real subcontractor bids and defined allowances. From there, you see every change to the number as it happens, and anything that adds scope gets your approval first.

How do your fee and site supervision work?

Our fee is one guaranteed maximum fee (GMF), written into the contract before work starts. Site supervision is separate from that fee. It’s its own line in the cost of the work, billed monthly at our actual cost (wages plus payroll costs) with no markup. It’s based on the share of a superintendent’s time your project needs, so smaller projects carry less. We’ll go over the specific numbers for your project on your first call.

When can the guaranteed maximum fee change?

Only when the scope changes. If you add or change scope, we price the change and get your sign-off before the work happens. Material price increases and allowance overages don’t change the GMF; those costs pass through at actual cost, and you’ll see them in the books.

What if you find rock, rot, or foundation problems?

Unforeseen conditions get handled in the open. We stop, show you what we found, walk through the options and costs, and work it through with you as a change before going further.

Do you handle design?

We can. If you bring your own architect, we’ll give real-cost feedback as the drawings develop, and design and engineering fees are separate from our pricing. Or we can run the project design-build with one of our partner designers, and design and engineering are included in your price. We don’t keep designers in house; our partners are independent professionals, and their costs show up in the books like everything else.

What will I see in the JobTread portal?

Subcontractor bids, material invoices, receipts, selections, approved changes, and where the budget stands—updated as the project moves.

When does a fixed price make more sense?

On simple, well-defined projects where there’s little left to decide and few unknowns. For custom homes, additions, and major renovations, open books keep the budget honest and the decisions in your hands.

Start With Clarity

Planning something worth keeping?

Tell us about the home, addition, or renovation you’re considering. We’ll walk through what’s likely to drive cost and whether OVB is the right fit.

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