When building a custom home in Charleston, one of the first financial decisions you’ll face is choosing the right construction contract. Two of the most common models are Cost Plus and Fee Build. At first glance, they may seem similar — but the differences can have a big impact on your budget, vendor choices, and peace of mind.

Cost Plus: Why It Often Costs You More

With a Cost Plus model, the builder charges you the cost of materials and labor, plus a percentage as their fee. On the surface, it sounds transparent — you see the invoices, and the builder adds their markup. But here’s the catch: the more expensive the vendor, the bigger the builder’s paycheck. That creates a built-in incentive for contractors to push higher-cost options, even when less expensive vendors could deliver the same quality.

Fee Build: A Smarter, Fairer Approach

At Luxe Builders, we prefer the Fee Build model. Instead of profiting off inflated costs, we charge a flat fee for our services. That means whether you select a luxury supplier or a more budget-conscious vendor, our compensation doesn’t change. This keeps our recommendations objective — we can guide you toward the best fit for your vision, budget, and lifestyle without bias.

Why It Matters in Charleston

Charleston’s booming real estate market means construction costs are already high. The Fee Build model protects you from unnecessary markups, aligns our incentives with yours, and ensures every dollar goes toward creating your dream home — not padding invoices.

Thinking about building or renovating in Charleston? Contact Luxe Builders today to learn how our Fee Build approach can save you money and keep your project on track.