Why Construction Pricing Feels So Confusing

15/01/2026 1h 13min

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Episode Synopsis

Why does building cost what it costs?In this episode, we’re breaking down how pricing actually works in construction and design, and why it can feel so confusing (and frustrating) from the outside.We walk through the most common pricing structures builders use across the country...fixed fee, cost-plus, and management fees, what they mean, who they work best for, and why we’ve landed on the approach we use at Heirloom Homes. We also talk about how pricing can (and should) vary by region.On the design side, we unpack how designers typically charge per room, per house, per square foot, or hourly and what we’ve learned about fair compensation, sustainability, and setting expectations on both sides.We also cover:Spec homes vs. tract homes vs. fully custom buildsWhy remodel pricing is different (and often trickier)What change orders are, why they happen, and whether they’re always necessaryWhy construction costs are so high right now—and what’s actually driving that realityThis episode is for homeowners, designers, builders, and anyone who wants a clearer, more honest understanding of the true cost of building well.