Rose Building Contractors, Inc.

13118 Cimarron Circle South  *  Largo, Fl  33774

Tel & Fax:  727-596-2390   *   Cell:  727-214-8018

Building - Contracting - Construction Management:


We offer a variety of services which can be packaged or individually selected.

The more common building agreements tend to follow one of the following methods.

1.     All Inclusive Building Contract

How it works
Everything mentioned on the plans and/or specifications is included unless specifically stated as not included.  Typically, all included items and products are more exactly specified down to the model number and color.

Pros & Cons
  • The contractor assumes all of the cost risk.
  • The contractor selects all subcontractors.
  • The buyer knows exactly what the entire project will cost.
  • Changes are difficult to make and usually result in a higher cost to the buyer.
  • This is not a good choice of agreement for a custom structure as it tends to lack flexibility.


2.     All Inclusive Building Contract with specific allowances

How it works
Everything mentioned on the plans and/or specifications is included unless specifically stated as not included.  Typically, many categories relating to trim, fixtures, cabinets, flooring, appliances, etc. are classified as allowance items and assigned a value as requested by the buyer.  These allowances are under the complete control of the buyer.  The contractor has no claim to any of the allowances items makes no guarantee as to their sufficiency.

Pros & Cons
  • The buyer can request any line item be scheduled as an allowance item.
  • The contractor selects all non-allowance subcontractors.
  • The contractor assumes the cost risk of all non-allowance items.
  • The allowance money, item by item, belongs to the buyer who may spend some, all, none or more on an item-by-item basis and assumes all the cost risk for the allowance items.
  • The buyer contracts for the allowance items and pays for them directly.
  • The contractor has no claims to any allowance monies.
  • Changes are easily made to any allowance items.
  • This is a very good choice of agreement for a custom structure as it is inherently flexible.


3.     Actual Cost  - PLUS a Fee

How it works
The contractor receives a straight fee.  All costs of construction are paid directly by the buyer at strict invoice cost.  The contractor is responsible for directing the work as if he were paying the bills directly and in many cases has the right to choose the more important subcontractors, or at the very least give the buyer a choice of three acceptable subcontractors for each construction task.

Pros & Cons
  • The buyer selects all subcontractors from a list acceptable to the contractor.
  • The buyer assumes all the cost risk.
  • The contractor assumes none of the cost risk.
  • The buyer pays all costs directly and any NET savings belongs to the buyer.
  • Changes are easily made to all items.
  • This agreement is extremely flexible and allows the buyer the change the project significantly.
  • This agreement allows the buyer a much greater hands-on position, if desired.
  • This agreement requires measurably more effort from the buyer.


4.     Actual Cost - PLUS a Fee with a "not to exceed" guarantee

How it works
The project cost is estimated based on everything mentioned on the plans and specifications.  Typically, several categories are given an allowance value.  This estimate is typically guaranteed NOT TO EXCEED 105% of the non-allowance items in total.  The contractor receives a straight fee which is reflected in the cost breakdown.  This fee would be reduced by any amount in excess of 105% of the total of all non-allowance items.  The owner typically pays all cost directly.  The contractor is responsible for directing the work as if he were paying the bills directly and has the right to choose the non-allowance item subcontractors.

Pros & Cons
  • The contractor typically selects the non-allowance subcontractors.
  • The contractor assumes limited cost risk on non-allowance items.
  • The buyer assumes limited cost risk on non-allowance items.
  • The buyer selects all allowance item subcontractors.
  • The buyer assumes the cost risk on all allowance items.
  • The buyer pays all costs directly and any savings belongs to the buyer.
  • Changes are easily made to all allowance items.
  • Changes can be made to non-allowance items as well but the total guaranteed numbers change accordingly.
  • This agreement is extremely flexible and allows the buyer to change the project significantly.
  • This agreement allows the buyer a much greater hands-on position, if desired.
  • This agreement requires measurably more effort from the buyer. 


5.     Fee for Specific Services
There are many services we can perform directly for you on a limited basis.  These services can be negotiated on an item by item or hourly basis.

  • Structural Inspections
  • Work Progress Inspections
  • Design Work
  • Pre-Build Consulting
  • In-Process Consulting
  • Jobsite Layouts
  • Subcontractor Negotiations
  • Partial Phase Contracting, examples are (permit through drywall) or (Shell Building).


Most popular method is the ALL INCLUSIVE BUILDING CONTRACT WITH SPECIFIC ALLOWANCES.

We are willing to work under any of these contract methods or a hybrid form preferred by you.

The only method to avoid is one that puts you and your builder on opposite sides, specifically COST PLUS PERCENTAGE.  This type of agreement requires you to spend more for the contractor to profit!


Wayne Rose, President & License Holder  CB-C057192