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Build Retainer – What Is It & Why Is It Important?

Build Retainer – What Is It & Why Is It Important?

No one likes surprises when building or remodeling. A build retainer is a financial arrangement between a design-build firm and a client in which the client pays a portion of the estimated project cost upfront to secure the services of the design-build firm for a specific period of time.

When first starting the home remodeling process with Nicholas Design Build, you must go through two design phases: conceptual and detailed.  During the detailed design phase, there is an option to secure a build reservation. If you would like to know more about the first two steps, read more HERE.

What is Build Retainer?

In the context of a design-build firm, a build retainer typically involves the following steps:

  1. Initial consultation: A Nicholas Design Build Project Developer will meet with the client to discuss their project needs and provide an estimate of the cost and timeline for the project.
  2. Agreement to proceed: Once the client goes through the Conceptual Design Phase and agrees to move the project into Detailed Design, we will request a build retainer to secure our services.
  3. Planning and preparation: Nicholas Design Build will begin planning and preparing for the project, including developing the design, preparing construction documents, and obtaining necessary permits.
  4. Project execution: Once the design and planning phase is complete, we will begin construction on the project. The build retainer may be applied to the cost of the project, and the client will be responsible for paying the remaining balance as the project progresses.

Why is a Build Retainer Important?

  1. Financial security: A build retainer provides financial security to a design-build firm by ensuring that they have a portion of the project cost upfront. This can help cover the costs of design and planning, as well as provide a buffer against unexpected expenses or delays.
  2. Commitment: A build retainer demonstrates the client’s commitment to the project and willingness to work with the design-build firm. This can help build trust and strengthen the relationship between the client and firm.
  3. Prioritization: A build retainer signals to the design-build firm that the client is serious about their project and expects a high level of service and attention. This motivates the firm to prioritize the project and allocate resources accordingly.
  4. Resource allocation: A build retainer allows the design-build firm to allocate resources to the project, such as personnel and materials, with the assurance that they will be compensated for their services. This can help ensure that the project is completed on time and within budget.

How Much Does the Build Retainer Cost?

The build retainer is typically a small percentage of the final estimated cost of the project itself. You are alerted to the cost in advance and do not have to pay unless you would like to proceed with design services.

Final Thoughts

Overall, a build retainer allows Nicholas Design Build to commit to a project and begin work with the assurance that they will be compensated for their services. It also provides the client with the security of knowing that we are committed to their project and will prioritize their needs.

Click here to read more about OUR PROCESS

Incorporating our superior craftsman earlier in the project ensures things run smoothly and gets you a confirmed start date. At Nicholas Design Build, we provide an exciting and straightforward experience working with one expert team from start to finish. Whether you are planning a kitchen, bathroom, basement remodel, or even adding an outdoor living space to your home, contact our experts!