Delivery Model

Delivered. Every Time.

Our delivery model is a reflection of our transparent and dedicated approach to custom homebuilding.
Our contract agreement has been designed to cover all aspects and phases of the homebuilding process. We take a standardized and clear approach to presenting our delivery model so that there is a safe and comfortable agreement in place that is easy to understand and fair for all parties involved.

GETTING STARTED

PRECONSTRUCTION PACKAGES

Our full preconstruction process adds significant value to a project.  We offer three preconstruction packages adapted to where the project is at when we begin.  The table below lists the services included in our preconstruction packages.

CONTRACT TYPE

As a long-standing member of the Toronto Construction Association (TCA), we use their official standardized Cost-Plus Agreement developed by the Canadian Construction Association.

  • This agreement is the national industry standard and is neutral for both parties.
  • It also encompasses all stages of the Preconstruction, Construction and Post-Construction process, allowing each step to seamlessly proceed forward.
  • The nature of this Agreement is to provide transparent quotations & invoices, while organizing payment terms, management fees and many more important topics.

FREQUENTLY ASKED QUESTIONS

The following are the most common questions regarding our custom homebuilding services. If you have any further questions, please do not hesitate to reach out to our team.

What kind of contract structure do you use?

We use a construction management contract that covers the preconstruction, construction, and post-construction phases. Preconstruction is a Fixed-Cost arrangement. Construction is a Cost-Plus arrangement, and includes an agreed-upon percentage-based management fee. Visit our Contract section above for more details.

What is an advance payment?

We are the construction manager on the project. Although we facilitate project payables, we do not finance the project ourselves. An advance is a payment made of approximately 15% of the entire budget prior to construction starting. The payments we receive for our preconstruction fees make up most of the advance amount used towards the cost of construction. The advance amount is used to fund the construction costs incurred up to the following billing period, at which point the advance amount is replenished. Then, during the final billing periods, near the end of construction, the advance amount is spent in full to pay for the remaining costs. For more information on payments see the Financial Overview section below.

Is PURE’s management of preconstruction free?

The management fee payments we receive during preconstruction are retained and treated as an advance payment against the cost of construction. 50% of the preconstruction management fees are credited back to the project only if the client agrees to proceed with construction.

What if I decide not to proceed withe construction at the end of preconstruction?

Clients can opt out of the construction phase. In that case, the preconstruction management fees are not credited towards the cost of construction, and remain with PURE Building Group to compensate for project management time and resources.

Can I skip the preconstruction phase?

We cannot proceed with construction without ensuring that the preconstruction requirements are correct, complete, and clear. Plans must be reviewed for constructability. While every project requires a different degree of preconstruction, it cannot be skipped in its entirety.

Can I bring on my own design team? What if I already have the design and drawings?

While PURE Building Group has a strong and diverse network of design firms to recommend and work with, we can certainly work with a design team that you are already working with. If you already have the design and drawings, PURE Building Group will go through an expedited construction period to ensure constructability and that budget expectations are set.

What happens if my project goes over budget?

Our budgets are fully itemized, and if a budget item goes over budget a change order is presented before that work commences to account for the difference. A change order details the cause of the variance including any impact on scope, cost and schedule.

What if your plans are complete and you are just looking for a price?

All projects must go through a preconstruction process. At a minimum, a Level Three package is required prior to construction to properly prepare a full budget with specifications.

FINANCIAL OVERVIEW

PRECONSTRUCTION FINANCIAL OVERVIEW

It is important to note that 50% of all preconstruction management fee payments are credited back to the project during the final months of the construction phase. Payments for our preconstruction management fees are made at certain milestones along the preconstruction process – for example, at contract signing and with each subsequent budget package.

The chart below illustrates how preconstruction management fee payments are scheduled depending on the package selected.

  • STAGES
  • PRECONSTRUCTION PACKAGES
  • BUDGET PACKAGES
  • PRECONSTRUCTION PAYMENTS

CONSTRUCTION FINANCIAL OVERVIEW

The construction payment schedule begins during the mobilization stage. The construction advance to begin mobilization is equal to 15% of the Baseline Budget for construction. With that payment the total advance amount is fully received. Afterwards, monthly payments are made equaling the construction cost incurred for each respective month. During the final billing periods the construction advance amount is spent in full to pay for the remaining project costs. In addition, 50% of the preconstruction fees are credited back to the project.

The example below shows the payment schedule for a $3 million sample project with a construction duration of 12 months.

  • Stages
  • Work
    Completed
  • Payments
  • Constructions
    Advance
  • Preconstruction
    Fees