PROCESS, PRICING & CHOOSING A CONTRACTOR · FORT WORTH & NORTH DFW

What Does a Fixed-Price Remodeling Contract Actually Include?

Straight answers about how professional remodeling actually works — from a Fort Worth general contractor with 500+ projects since 2009.

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Fixed-Price Contracts

THE SHORT VERSION

A fixed-price remodeling contract states one total price for a fully defined scope, and that price does not change unless you change the scope. It should name every material and allowance, the payment schedule, the start and completion dates, the change order process, and exactly what would justify a price increase.

What has to be in it for the price to actually be fixed

A number on a page is not a fixed price. What makes it hold is the specificity behind it. A real fixed-price contract contains all of the following, and a contract missing any of them has a hole the price can escape through.

A complete written scope — room by room, trade by trade, including demolition, disposal, and cleanup.
Named materials and models, not categories. “Quartz countertop” is a category. A named slab at a named thickness is a specification.
Allowances stated in dollars for anything not yet selected, with what happens if the selection runs over or under.
A payment schedule tied to completed milestones, not to calendar dates.
Start and substantial completion dates, in writing.
A written change order process requiring your signature before any cost is added.
The specific conditions that would justify a price change — and they should be short, unforeseeable, and concrete.
Warranty terms, insurance certificates, and lien waiver procedure.

Fixed price vs. cost-plus, in one sentence

In a fixed-price contract the contractor carries the risk of the job costing more than expected; in a cost-plus contract you do. Both are legitimate structures, and cost-plus makes sense on projects where the scope genuinely cannot be defined up front — a historic restoration where nobody knows what is behind the plaster. For a defined remodel, fixed price is the one that lets you plan your life around a number.

	Fixed Price	Cost-Plus
Who carries overrun risk	Contractor	Homeowner
Price known before start	Yes	No — an estimate only
Incentive to work efficiently	On the contractor	Weaker
Requires defined scope	Yes	No

The three ways a “fixed” price stops being fixed

Vague allowances. A $3,000 tile allowance on a bathroom with 300 square feet of tile is not an allowance, it is a deferred bill. Allowances should be sized against real selections at the finish level you actually want.

Undefined scope. If the contract says “remodel primary bathroom” without listing what that includes, every question during construction becomes a negotiation.

Verbal change orders. The single most common source of remodeling disputes. If a change is not written and signed before the work happens, the price is decided after the fact.

How Birdseye contracts work

Every Birdseye project is priced as a fixed amount before demolition begins, off a written scope produced during design. Changes are documented and signed before they are built. The price you approve is the price you pay — that is the entire proposition, and it is why the design phase is thorough rather than fast.

See fixed-price vs. cost-plus contracts for the full comparison.

Frequently Asked Questions

Can a fixed-price contract ever change?

Yes, in two situations: you request a change, or a genuinely unforeseeable condition is discovered — undisclosed structural damage, hidden water damage, or something buried in a wall or slab. Both should require a written, signed change order before work proceeds.

What is a reasonable deposit on a remodeling contract?

A modest percentage tied to mobilization and material procurement is normal. Be cautious of any contractor asking for a large share of the total before work begins — payments should track completed milestones, not the calendar.

Should allowances be avoided entirely?

Not entirely, but they should be minimized. Every selection made before signing is one fewer variable. Where allowances are unavoidable, they should be dollar-specific and sized against what you actually intend to buy.

What if the contractor finds something unexpected behind a wall?

That is what a written change order is for. The condition gets documented, priced, and signed before the work happens. What should not happen is discovering the cost on the final invoice.

Does a fixed price mean a fixed schedule?

Not automatically — they are separate commitments. A good contract states both a start date and a substantial completion date. Ask specifically whether the schedule is contractual or aspirational.

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