The Flat Builder Fee
Most custom builders in this market charge a fee based on a percentage of what your home costs to build. Hilton Head Builders does not work that way. We agree on a flat builder fee before construction starts, and that fee does not change if the project gets more expensive. This page explains how that works, why it matters on a project of this size, and what it changes about the relationship between you and your builder.
How the Flat Fee Works
The builder fee is a single number, agreed with Ed Flynn directly, before construction begins. It is set based on the scope, complexity, and location of your project, not as a percentage of the final construction cost.
- The fee is fixed once it is agreed. It does not move if material prices increase, if the design becomes more complex, or if the project runs longer than planned.
- It is separate from the actual cost of construction: labor, materials, permits, and subcontractor work.
- You know the number before you sign, and it stays the same regardless of how the budget for the house itself evolves.
- Changes you choose to make, adding square footage, upgrading finishes, and similar owner-driven decisions, are handled as documented changes to scope, discussed and agreed before they happen.
Why a Percentage Markup Creates a Problem
When a builder’s fee is calculated as a percentage of total project cost, the arithmetic works against the client in a specific way. The more the house costs to build, the more the builder is paid. That does not mean every builder charging this way acts in bad faith. It means the incentive is pointed in the wrong direction on a project that will involve hundreds of decisions over many months, from framing changes to finish selections to site conditions nobody anticipated at contract signing.
A flat fee removes that particular incentive. Ed Flynn is paid the same amount whether your project comes in efficiently or runs into complications. There is no arithmetic reason for costs to drift upward, because drift does not benefit the builder.
Open Books, Full Visibility Into Every Bill
Under the flat fee model, you see the actual bills. Not a summary, not a lump-sum draw request, the invoices themselves.
Every subcontractor invoice and supplier bill passes through to you as it is submitted.
Costs are not bundled into combined line items that make it hard to see what any one trade or material actually cost.
You can ask about any charge at any point in the project and get a direct answer tied to a specific invoice.
This is not a report generated at your request. It is the standard way the project is run.
If you’re still evaluating a lot, we’re glad to walk it with you before you’re under contract, not just after.
A Separate Project Account for Client Funds
Funds you provide for construction are held in a project-specific account, not mixed with funds for other jobs the company is building at the same time. Draws are tied to actual work completed and actual bills received on your project, not to a percentage schedule disconnected from what has actually happened on site.
This matters most in the middle of a build, when multiple trades are active and the pace of spending can be hard to track from a distance, particularly if you are not on the island full time. A separate account and visible billing mean you are not relying on trust alone to know where your money is going. You can see it.
What This Is Not
This is not a claim that Hilton Head Builders is the least expensive option on the island. It is not a discount, and it is not positioned as one. A flat fee is not lower than a percentage fee by definition, and the two are not directly comparable line for line, since they are structured differently.
What the flat fee model changes is not the price of the house, it is what you can see while it is being built. Some buyers value low price above all else. This model is built for buyers who value knowing exactly what they are paying for and why, and who are spending enough on this project that visibility matters more than shaving a percentage point off a fee structure.
How This Works From Contract to Closeout
Why This Matters More on a Project This Size
A flat fee and open billing matter on any construction project, but they matter more on a custom home in the 1.5 to 2.5 million dollar range than they do on smaller work. At this size, the gap between a well-managed budget and a poorly managed one can run into six figures, and most of that gap is invisible to an owner who only sees draw totals rather than the invoices behind them.
Many of our clients are managing this project from another market, sometimes another region of the country, while also handling the sale of a current home, a relocation, or simply not being on Hilton Head, in Bluffton, or in Okatie full time during construction. Distance makes billing visibility more important, not less. Seeing the actual bills as they arrive, rather than a monthly summary, is one of the few ways to stay genuinely informed about a project you cannot walk past every day.
There is also a practical reason this structure suits larger, more complex sites: projects that involve elevation requirements, oceanfront exposure, or a community architectural review process tend to carry more variables than a standard inland lot. A percentage-based fee rewards those variables turning into added cost. A flat fee does not.
What the Builder Fee Does and Does Not Cover
The builder fee covers Ed Flynn’s oversight, coordination, and management of your project. It does not include the cost of construction itself, land, design fees, permitting, or the community review process your homesite may require. For a fuller breakdown of what typically drives total project cost on Hilton Head, in Bluffton, and in Okatie, see the cost page.
FAQs
Is the flat builder fee cheaper than a percentage fee?
How is the flat fee determined?
What happens if I add scope partway through the project?
Do I actually see individual subcontractor invoices, or a summary?
Where is my money held during construction?
Does the flat fee model apply to large renovations as well as new builds?
Who do I talk to about this before I sign a contract?
Is the builder fee negotiable?
Will I still get a single, easy-to-read summary of project costs if I want one?
A Straightforward Note to Close On
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