What Is a Pre-Construction Agreement—and What Are You Paying For?

A clear plan. Transparent pricing. Your choice of builder.

Two people reviewing architectural drawings together at a planning table
Before construction begins, the important work is bringing the design, scope and budget into alignment. Illustrative stock photograph: Angie Reyes / Pexels.

An extensive whole-home remodel or a new build starts with much more than a set of finishes. There are layouts to resolve, structural questions to answer, professionals to coordinate and hundreds of decisions that affect what the project will cost.

For projects of that scale, a paid pre-construction package can be a worthwhile investment. It gives the planning work its own scope, time and accountability before you commit to construction. But it is not something every homeowner or every project needs.

The goal is the right amount of planning for your project. We will help you decide whether a detailed quote is enough—or whether a full pre-construction package is worth the investment.

Estimate, quote or full pre-construction?

These are different levels of service. We start by talking through what you want to build, the information you already have and what still needs to be worked out. From there, we advise you on a sensible next step.

START THE CONVERSATION

An estimate

A general price based on basic discovery and a conceptual conversation. Useful when you are exploring an idea and want to understand whether it may fit your budget. It is an early guide, with assumptions still to resolve.

DEFINE THE PRICE

A detailed quote

A more focused route to accurate pricing. We take the necessary steps to understand and price the work, often using plans, selections or a scope you already have. This can cost less than full pre-construction without requiring its extensive design and planning package.

DEVELOP THE WHOLE PROJECT

Pre-construction

A standalone paid agreement to coordinate design, documentation, selections and detailed construction pricing. Usually best suited to very large or complex work, such as extensive whole-home remodels and new builds.

A detailed quote may be all you need. If the project is well defined and does not require an extensive design process, we may recommend the quote route. Whether there is a fee depends on the depth of investigation and preparation needed; we discuss that with you before proceeding.

Full pre-construction becomes valuable when the project itself still needs to be developed. Major structural changes, interdependent design decisions, site questions and substantial coordination can justify a deeper planning engagement. A complex addition may also be a good candidate. Project size matters, but so does how much remains unknown.

We do not recommend a full package simply because it is available. We explain what your project needs and why, so you can decide whether that investment makes sense.

What does pre-construction cost?

Our planning work is generally billed at approximately $100 per person-hour, plus direct professional and project-specific costs. One person working for one hour is one person-hour; when several people contribute, their time contributes to the total.

Direct costs may include architects, engineers, interior designers, soil testing, surveys or topographic information. Before preparing the agreement, we discuss your project and consult the professionals we expect to engage so we can understand their scope and anticipated charges.

An upfront deposit is required. The pre-construction agreement defines the planning scope and payment terms. These fees pay for the planning work and are not credited toward a later construction contract.

What does the full package include?

The objective is a coordinated plan explaining what will be built, how it is intended to be built and what is included in the proposed construction price. Your agreement defines the deliverables appropriate to your project.

  • Design and construction documents. Construction-ready architectural drawings, renderings, structural or engineering plans, and required site information.
  • A permit-ready package. Applicable drawings and supporting documents assembled for submission. Permit-ready is not permit-approved; reviewers may request clarification or revisions.
  • Actual product selections. Specific tile, flooring, cabinetry, faucets, fixtures and hardware, rather than relying only on broad allowances.
  • A line-item construction price. A detailed breakdown identifying the work, contractor markup, contingency and any remaining assumptions.
  • A proposed schedule. The anticipated sequence and timing, with an understanding that permitting, availability, weather and changes can affect it.
  • Clear expectations. Inclusions, exclusions, change orders, completion and final walkthrough expectations, and applicable warranty offerings.
Hands comparing tile and material samples beside a laptop during a design discussion
Selections turn broad allowances into specific decisions—from tile and surfaces to the fixtures and hardware that complete a room. Illustrative stock photograph: Kaboompics / Pexels.

A finish is more than a color on a mood board. Its product, quantity, installation requirements and availability can all affect the budget. Working through those details is part of the deeper planning that distinguishes a pre-construction package from a more focused quote.

How do the three pricing tiers work?

During full pre-construction, pricing develops as the project becomes more defined. We present it at milestones so you can see how decisions and new information affect the budget.

TIER 1

Early discovery

Approximately ±20%, sometimes more. After an initial period of discovery and planning work, we develop an informed starting price. Important details remain unresolved. This helps us discuss whether the developing project aligns with your budget.

TIER 2

Developed scope

Approximately ±15%. Additional design information, scope details and construction input support a more developed price. It may move up or down as we learn more.

TIER 3

Detailed selections

Approximately ±5%. Selections have been made, actual products and materials identified, and real pricing obtained for construction work and project components.

These percentages describe expected accuracy relative to the eventual construction cost. They are planning targets, not guaranteed limits on cost changes. Changes to the agreed scope or selections also change the basis of the price.

The construction amount and terms you ultimately accept are documented in a separate construction contract.

What does transparent pricing mean?

Your package includes a line-item breakdown of the proposed construction work, with the contractor markup identified. Reformation generally applies a markup of 18–25% to construction costs. That percentage is calculated on the underlying construction costs, not the final customer price.

For example, $100,000 in construction costs would carry $18,000–$25,000 in markup at those rates. This illustrates the calculation only; your project breakdown identifies the actual costs, markup and contingency. Pre-construction fees remain separate.

Why carry contingency if pricing is detailed?

Careful planning reduces uncertainty, but it cannot eliminate every unforeseen condition. The final project budget includes an identified contingency to help address unexpected conditions during construction.

Contingency is separate from contractor markup. As the project becomes better defined and pricing more accurate, a smaller contingency percentage is generally appropriate.

Any unused contingency is returned to the customer through a credit or reimbursement.

If a project carries a $10,000 contingency and $6,000 is used, the remaining $4,000 is credited or reimbursed. The construction agreement sets out how its use and final reconciliation will be handled.

Contingency is not an unlimited fund or automatic coverage for homeowner-requested changes. Changes to the agreed scope or selections may require a change order.

You are part of the planning team.

We begin with what you want to achieve, what you are comfortable spending and how you want the finished home to look and feel. Then we work toward specific decisions—from the floor plan to tile, faucets and cabinet hardware.

We hold meetings, establish timelines and give you due dates for decisions. Architects and designers help develop the choices while your priorities remain central to the process.

You will have access to a JobTread customer portal where project information and documentation are kept together. We walk you through the portal, agreement and project details so you know how to participate and where to find information.

Brandon Fillinger, owner and project manager at Reformation General Contracting

Personally coordinated by Brandon

I personally manage Reformation’s projects and coordinate the design professionals and trade leads. Daniela Jimenez supports client communication. As additional points of contact are assigned, we introduce them so you know who is involved and what they handle.

You are welcome to bring your own architect or designer. We still need to coordinate their work with the overall scope, selections and construction requirements, and that coordination remains billable.

How long does planning take?

The timeline depends on the work involved. A smaller planning engagement may take approximately two to three weeks, while a complex project may require three to six months. Design development, engineering, investigations, professional availability and homeowner decisions all influence the schedule.

Those ranges are not a recommendation that every small project needs a full package. We first determine the appropriate level of service, then discuss the anticipated timing for your particular scope.

Crew finishing concrete in front of a Reformation garage addition under construction
Where the planning leads: coordinated work on site. Reformation project photography · Garage addition during concrete work; construction shown in progress.

Do you have to hire Reformation to build?

No. Your pre-construction agreement stands on its own. At completion of the agreed planning work, you receive the completed package along with our proposed price for construction.

If you choose Reformation to build, we prepare a separate construction contract. If you choose another contractor, you can take the completed package to them and ask them to price the build. Another contractor may price or propose to carry out the work differently, but you have a defined project to discuss. That choice remains yours.

Start with a conversation, not a package.

You do not have to know which service you need before contacting us. Tell us what you have in mind, what information you already have and where you need help. We will explain whether an estimate, a detailed quote or full pre-construction is the most appropriate next step.

If you are planning an extensive whole-home remodel, a new build or a complex home addition in Dublin, Upper Arlington, Worthington, Powell, Westerville, Galena or Grandview Heights, we can help you understand what needs to happen before construction begins.

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