Content
Sep 24, 2025
Fixed Price vs. Time & Materials – Which Is Better for Your NYC Renovation?
Robert Scott
4 MIN READ
One of the biggest questions New York City homeowners face when starting a renovation is: how should I pay my contractor?
Two of the most common models are fixed price and time & materials (T&M) contracts. Each comes with advantages and risks—and understanding the difference could save you thousands of dollars and months of frustration.
What Is a Fixed Price Contract?
A fixed price contract means your contractor agrees to complete the entire renovation for one set price. Everything from demolition to final finishes is included in that number (unless you make changes along the way).
Pros:
Budget certainty: You know your total cost upfront.
Less day-to-day oversight: The contractor manages the schedule and costs.
Easier to present to co-op boards or lenders.
Cons:
Less flexibility: Any changes become “change orders,” often at a premium.
Higher upfront cost: Contractors build in contingency for unknowns.
Risk of corner-cutting if the contractor underestimated the project.
What Is a Time & Materials (T&M) Contract?
A T&M contract means you pay for the actual labor hours, materials, and sometimes overhead/profit as the project unfolds. Think of it as a running tab.
Pros:
Flexibility: Easy to adjust scope mid-project.
Transparency: You see exactly what things cost.
Often cheaper—if the project runs smoothly.
Cons:
Less budget certainty: Costs can balloon with delays or changes.
Requires trust: You need a reliable GC who tracks hours and invoices honestly.
Can cause stress if you don’t monitor closely.
Which Is Better for NYC Renovations?
In New York City, where permits, board approvals, and hidden building conditions are the norm, the best option often depends on your situation:
Choose Fixed Price if:
You want strict budget certainty.
The project scope is well-defined with detailed drawings and specifications.
You prefer a more hands-off approach.
Choose T&M if:
You’re renovating in an older brownstone or pre-war apartment with unknowns.
You want flexibility to change finishes, layouts, or designs midstream.
You trust your GC and want transparency.
How SAY Construction Approaches This
At SAY Construction, we’ve seen both models work—when used in the right context. For many NYC clients, we recommend a hybrid approach:
A fixed price contract for clearly defined work (like flooring, painting, or cabinetry).
A T&M model for areas where unknowns are likely (like plumbing, electrical, or demolition).
This gives clients the best of both worlds—budget control with flexibility.
Bottom Line
The choice between fixed price and time & materials isn’t about which is “better,” but which is better for your specific project. With the right planning, a clear scope of work, and an experienced GC, either model can lead to a successful renovation.
Thinking about starting your renovation? Let’s talk about which contract type makes the most sense for you—and how to avoid costly surprises along the way.
📍 Serving NYC homeowners in Manhattan, Brooklyn, and beyond.
📞 Call/Text: 669-294-3577
📧 Email: robert@say-construction.com
