On this episode, Reece sat down with Chris Kerr, founder of White Oak Home, to unpack a timeless debate that every builder faces sooner or later: fixed price or cost plus?

Chris has built high-end custom homes across the South Shore of Massachusetts for years. He’s grown from a one-man shop to a team scaling fast, and he’s seen both the upside and chaos that comes with trying to pick the right pricing model for each job.

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“I’m pro a man who says what he’s going to do and executes on that,” Chris said early in the episode. That mindset, paired with the reality of being a solo operator for most of his company’s life, is what led him to favor fixed price work. “I’d rather spend the time up front, define the scope down to the kind of trim we’re using, and give the client a number I can stand behind.”

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But as the conversation went on, it became clear: this debate isn’t about which model is “better.” It’s about how builders manage risk, confidence, trust, and cash flow.

The Case for Fixed Price: Simplicity, Confidence, and Control

Chris laid it out plainly: fixed price offers a clarity that both builder and client can align around. It communicates confidence. It creates a starting point for accountability. And, importantly for Chris, it simplifies the back office.

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“I didn’t have time to be chasing down invoices, reconciling receipts, building new draw packages every few weeks,” he said. “I found it easier to handle billing and invoicing with a lump sum contract.”

This matters for builders still wearing every hat: PM, estimator, bookkeeper, and everything in between. Less admin means more time on site and fewer chances for small errors to become margin killers.

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And while Chris admitted ego plays a role (“There’s something about shaking hands, giving a number, and delivering”), he also acknowledged something deeper: the structure of fixed price allowed him to stay lean, move faster, and feel in control of outcomes.

The Case for Cost Plus: Flexibility and Real-Time Accuracy

Of course, fixed price isn’t without its drawbacks.

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As builders grow, margins tighten. Project complexity increases. Selections change. Scope shifts. In those moments, cost plus becomes a way to shift risk, stay agile, and keep clients engaged in the real financial picture of the job.

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Reece pushed Chris on this, arguing that both models require airtight cost tracking. “Whether you’re cost plus or fixed price, if you’re not tracking every dollar, you’re flying blind. You can’t plus what you don’t cost, and you can’t protect margin if you don’t know where it’s going.”

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Chris agreed… especially now, with his business growing and new tools (like Adaptive) starting to replace his ad-hoc systems. “We’re doing our first cost plus job now. And I’ll be honest, the admin scared me. But having Adaptive to hit the button for payments, manage receipts, and track actuals is changing the game.”

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That’s the key point: when supported by the right tools, cost plus doesn’t have to mean chaos. It can mean transparency. It can mean faster billing. It can even mean happier clients.

Risk, Trust, and What Builders Are Really Optimizing For

Beneath the pricing model debate is something more personal — how builders view risk, and where they choose to carry it.

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Fixed price can give you control, but it also means you're absorbing every cost overrun. Cost plus shifts some of that risk to the client, but with it comes the need for clear communication, real-time reporting, and strong systems to back it up.

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Chris summed it up like this:

“I’d rather create my own destiny. Sometimes we go over on line items. Sometimes we come under. But I like the hunt. I like knowing that if I save three grand on siding, that’s margin I earned.”

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It’s a sentiment a lot of builders will relate to — especially those who came up through the trades and are now running businesses with payroll, overhead, and marketing to manage.

So… Which Model Wins?

In the end, this wasn’t a debate with a winner. It was a builder talking honestly about what’s worked for him, and where he’s pushing himself to grow.

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For Chris, fixed price was about simplicity and confidence. But as his business evolves, he’s starting to see how cost plus (with the right support) might offer new opportunities. Especially as clients, jobs, and expectations get bigger.

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The real takeaway? Know your numbers. Know your tools. And pick the model that supports the kind of builder and business you want to be.

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