Worried About Remodeling Price Increases?
- Christian Raab
- 7 days ago
- 3 min read
Our Fixed-Price Agreement Solves That
I had a client come to me the other day, concerned about tariffs and price increases. He was concerned that if the tariffs caused the material of his project to go up that we would be raising our prices on him. I completely understand his concern. We’ve all heard the horror stories: A project starts with one price and ends with a final invoice that’s thousands—sometimes tens of thousands—higher than expected. Whether it’s surprise fees, vague allowances, or market-driven “adjustments,” those extra costs can derail your experience and your finances.
At Pinnacle, we don’t believe in surprises. That’s why we use fixed-price agreements.
What is a Fixed-Price Remodeling Agreement?
A fixed-price agreement means the price you agree to at the start is the price you pay at the end. Period. It doesn’t change due to shifting material prices, labor shortages, or global supply issues. We take the risk so you don’t have to.
You’re not paying for uncertainty—you’re paying for results.
No Escalation Clauses, No Hidden Fees, No Surprise Extras
Many contractors build escalation clauses into their contracts, giving them the ability to raise prices during your project if their costs go up. That includes increases in labor, material costs—and yes, even tariffs.
In construction, there are a lot of variables, and it makes sense why there would be these additional costs. We’ve been seeing a lot of volatility in the market. Lumber prices spike at times, steel tariffs, fuel surcharges, and labor shortages. Our cabinet company recently sent an email saying they are now adding a “tariff surcharge” to the invoices for the foreseeable future. I’m not exactly sure what that means, except that it’s another cost.
Why a Fixed-Price Agreement Makes Remodeling Less Stressful
At Pinnacle, we don’t pass those costs onto the customer after the fixed-price remodeling agreement is signed. So you can rest easy and know that unless you make a change to our scope, you will pay exactly what you signed up for!
Here is what I told our client who was concerned about the tariffs and price increases: Let’s call him Bob (That’s not his real name).
“Bob, you have signed an agreement with us, and you will not pay a dime more than what that agreement says. If the tariffs cause the lumber to double, you will still pay the same amount. If concrete goes up 10%, you will not pay any more than what your agreement says. We will cover everything. You’ve signed a fixed price agreement and it will stay fixed until we are finished.”
That seemed to set his mind at ease. It is a large project, and even small percentages can cause the price to rise substantially, and that was his concern.
Guess what? The concrete cost did go up a little bit, and we didn’t charge him any more. Remember that cabinetry “tariff surcharge” I told you about earlier? We didn’t pass it on either! Yes, we did lose a little money on those things, but what is more important to us is our clients' trust!
If you’re interested in learning more about how to get started with your next remodel, check out a few of the links below:
Or you can just do it the old-fashioned way and give us a call: 316-260-4502
Written by: Christian Raab
Christian is the founder and owner of Pinnacle. He began the company here in Wichita in January of 2012. He grew up in Pittsburg, Pennsylvania, working the summers with his neighbor, who was a contractor. He later went to school to earn his degree in business with a construction emphasis. Christian’s vision for the company has always been to provide homeowners with a great experience as they work with a professional team they can trust.
When Christian isn’t at the office, you can find him spending time with his five kids, woodworking, and watching the Steelers.
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