Modern Structure’s Pre-Construction Agreement

What Happens Before a Custom Home Contract is Signed?


When a customer calls us, they’re ready to design and build the home of their dreams, and we take that very seriously. Most times, customers need to “shop” for the right builder before they commit, and we totally understand that.


At Modern Structure, we follow a detailed pre-construction process that benefits all parties involved. Our process helps you, the customer, make more informed decisions, and helps us, the builder, fully develop a home design that fits your needs and your budget.

You’ll find that with this process in place, you’ll know exactly what your home will look like, how much time it will take to build, and how much you will spend. And, in the end, you’ll feel more confident making the decision to choose Modern Structure as your new home builder. 

7 Reasons Why We Use a Pre-Construction Agreement

So, why do we choose this lengthier, more detailed process? Why don’t we just give potential customers a quick cost estimate and move forward? 


Simply put, a pre-construction agreement is better. 


The pre-construction agreement:


  1. Helps manage costs and set a realistic construction budget 
  2. Helps the homeowner know exactly where their money is going
  3. Builds trust among the builder/homeowner 
  4. Provides detailed expectations for the home design and construction process
  5. Helps both the builder and the homeowner decide if they’re compatible before moving forward with the project. The builder/homeowner relationship is very important!
  6. Gives the customers one of the most detailed estimates to build their desired custom home before signing a full build contract
  7. Gives the customer assurance that they won’t have costs creep up with their custom home build    

What Does a Pre-Construction Agreement Look Like? 


Before we sign a contract and start building a home, we want to be 100% sure that we are the best fit for you.  We truly feel as though a pre-construction agreement is the best way to select a home builder. Without one, you’re choosing a builder based on a quick estimate that isn’t very effective. With this process, you’ll get a clear, accurate estimate of the cost of your new home and we’ll get to know each other in the process. 


Let’s talk about how this works. 

1. Our Initial Meeting with the Customer

The first time we meet with a potential customer, we start with the basics. 


  • We’ll ask questions to get a general understanding of the type of home you’re wanting, the type of finishes you hope to have, and where you want to build it. 


  • We’ll discuss your budget and talk about what an average/typical home costs. If we agree on a realistic budget range, we’ll move forward with creating a detailed cost estimate for your custom home. If at this point we can’t agree on a realistic budget range, we’ll mutually part ways.

2. Drawing up the Pre-Construction Agreement 

Once we’ve made it to step two, we’ve agreed on a realistic budget range and we’re ready to keep moving forward. 


The Home Design, Selection, and Cost Estimate Timeline:

  • The process for home design can take between 3 and 5 weeks depending on the scope of changes that are made.
  • Then, we walk you through selecting all of your finishes and fixtures. This can take 3-4 weeks depending on how quickly you can make decisions.  
  • After selections are made, we draw up a detailed cost estimate that can take 3-4 weeks.


With this process, there is a fee associated with it to help compensate for our time and resources. A portion of that fee is applied to your building cost should you decide to hire us. 


Our pre-construction agreement includes:

  • Time for additional meetings to develop a rough design of your custom home
  • Time to meet with a custom home architect (not required)
  • The true cost of utilities (gas, sewer, electric, water) that need to be connected 
  • A site survey to finalize the placement of your home on the property / lot
  • Pricing of your selections (cabinets, counters, flooring, tile, trim, doors, windows, lighting, fans, plumbing fixtures, siding, hardware, appliances, and specialty items like fireplaces)
  • Detailed scopes of work for all sub-contractors with detailed cost estimates for everything to complete your custom home 

3. After the Pre-Construction Agreement is Complete

After we’ve run all the numbers and completed the agreement, we’re ready to go over with you in detail. 


  • We will have a meeting with you to discuss the cost estimate of your home and go over each line-item 
  • At this time, we will provide some simple things you can do to reduce your costs and may suggest additional details to make your home more custom 
  • Once the cost estimate has been refined to the homeowner’s acceptance, we will develop a full cost plus building contract
  • If you decide not to proceed with building, the full set of drawings, list of selections, and cost estimations are yours to keep


We know that a home is one of the biggest investments you’ll make, and this process is designed to respect that and help you make the most informed decision possible. If you choose to build with us, we can’t wait to make your dreams come true!

Your Dream Home is a Phone Call Away

If you’ve already been shopping for a custom home builder, or you’re just getting started, we’d love to talk about your plans! With our decades of building experience, we’re confident that you’ll end up with the perfect home for your unique lifestyle. Setting up a meeting with us is as easy as filling out this form, or giving us a call at 812-306-8438.