Planning to build in Forster or the surrounding areas?
Before you get too deep into design ideas or Pinterest boards, there’s one decision that can either save or cost you thousands.
Will your builder lock in a fixed price contract… or leave the door open with cost-plus?
Most builders offer one or the other. And while cost-plus might appear cheaper at first, it often leads to surprise expenses, blown-out budgets, and stressful conversations you didn’t see coming.
At Manning Homes, we believe in full transparency which is why we work exclusively with fixed price contracts. Here’s why.
What Is a Fixed Price Contract?
A fixed price contract means the total build cost is agreed upon before construction starts. It includes all your selections, specifications, and allowances and the price won’t change unless a formal variation is made, such as adding extra features or upgrading materials during the build.
Once the contract is signed, that number is locked in.
Key Benefits:
- Budget certainty from the outset
- Reduced risk — the builder, not the client wears cost increases
- Smoother finance approvals with a clear, fixed figure
- Transparent scope with no vague allowances
Why We Don’t Offer Cost-Plus Contracts
In a cost-plus contract, the client agrees to pay for the actual cost of labour and materials as they occur, plus a builder’s margin.
This type of contract leaves the total price open-ended and shifts the financial risk to the client. Price increases, supply delays, or labour blowouts? Those costs are added to the bill.
It’s a contract structure that often results in budget blowouts and stress — which is why we don’t use it.
Why Fixed Price Matters in Forster
Forster is a regional market and that presents unique variables when it comes to construction. Material delivery times can vary, supplier stock levels fluctuate, and trade availability isn’t always guaranteed.
A fixed price contract protects clients from these external factors by absorbing the risk and ensuring the agreed price stays in place. It creates stability in a market that can otherwise feel unpredictable.
The Problem with Cost-Plus in Practice
Builders who promote cost-plus contracts often highlight the flexibility or lower starting prices, but they rarely mention the financial exposure that comes with it.
What starts as an attractive low entry price can quickly escalate as prices increase or plans evolve. The result? A final cost that far exceeds expectations.
In contrast, fixed price contracts give full cost visibility upfront — which is essential for planning, finances, and peace of mind.
What a Proper Fixed Price Should Include
A true fixed price contract isn’t a one-page quote or a ballpark estimate.
At Manning Homes, we ensure all costs are captured before the contract is signed, including:
- Site works and council fees
- Clear and complete selections
- Detailed documentation and full scope of works
We also offer a client portal with 24/7 access to selections, updates, schedules and messaging — making communication easy and keeping everything on track.
Common Misconceptions
Myth: Cost-plus is cheaper
Truth: It often ends up more expensive due to uncontrolled extras and market fluctuations.
Myth: Fixed price means no flexibility
Truth: Changes can still be made, they’re just formalised through variations for clarity and transparency.
Myth: Good builders can make cost-plus safe
Truth: Even reputable builders can’t control supply chain issues, delays, or rising prices.
Supporting Data
According to NSW Fair Trading, the most common disputes in residential construction involve unexpected costs, unclear contract terms, and variations — often stemming from poorly defined contracts or open-ended pricing like cost-plus agreements.
Fixed price contracts remove this ambiguity by clearly outlining responsibilities and pricing from the start.
“After discussions with different builders we decided to use Manning Homes and we couldn’t have been happier with our choice. Jake and Emily guided us through the process with professionalism, honesty and integrity.”
Chris & Danni, Tuncurry NSW
Final Thoughts
Choosing the right contract isn’t just a legal step, it’s a strategic one.
It determines how your build will be managed, how much you’ll really pay, and whether the experience is clear or confusing.
At Manning Homes, we’ve committed to fixed price contracts because we believe it’s the best way to deliver high-quality, custom homes with clarity, consistency, and trust. No surprises. No inflated invoices. Just certainty from the start.
Want to learn more about what to expect before designing your home? Contact us by clicking here or download our free guide “The 7 Things You Must Know Before Designing a New Home”.
