What is a Project Development Agreement?

July 22, 2020

What is a Project Development Agreement?

We provide our homeowners with a preliminary estimate after the initial consultation. If we're a good fit for each other and you're comfortable with our preliminary estimate the next step would involve a Project Development Agreement (or PDA).

Our Project Development Agreement allows us to help develop your project for construction. There is typically quite a bit of pre-construction homework to do before a remodeling job is ready to begin. The PDA allows us stay on budget & schedule.

Some homeowners are familiar with the "three bid" type scenario. There is absolutely nothing wrong with interviewing multiple contractors. In our opinion the three bid system is flawed. There seems to be huge disconnect between completing bids when the project has not yet been developed properly.

We often refer to the shopping analogy: If you ask three different people to go grocery shopping (with little instruction) what will happen? You'll get three different carts, with three different prices from three different stores (if they even show up or call you back)!

The PDA allows us to hone in on a defined scope and guaranteed project price. Each client that signs a PDA will receive a comprehensive job book & website that includes;

  • In-house design
  • Interior design
  • Plans & elevations
  • Enginering
  • Scope of work
  • Fixed price proposal
  • Specifications
  • Client selections 
  • Client allowances
  • Subcontractor bids
  • Budget revisions
  • Value engineering
  • Production schedule
  • Contract
  • Warranty

As you can see, there is a fair amount of work to do before any remodeling project is truly "ready" for construction. This pre-construction homework is included in our final construction contracts. We're "shovel ready" or "demo ready" after the PDA is complete. 

The best way to fully understand what is involved with our Project Development Agreement is to review a sample job book and to"Test Drive" a project website. If you'd like to set up a video conference to review a sample job or schedule an initial consultation please feel free to reach out.

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