B
Evidence Grade B
Graded
accuracy verified by the review judge
Safe to Cite
Recent
28%
28% -- profit margin difference for residential home builders using fixed price contracts (2025)
Projects with fixed price contracts had 28% higher profit margins compared to cost-plus or open book projects.
Attribution:
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Lighthouse Research Team
Last verified:
·
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Source verified
Evidence graded
Value
28%
Unit
Percentage
Data Vintage
2025
Entity
Sample Size
60,000
Evidence Quality
B
Strong, reliable evidence
Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.
Single source - not yet corroborated
Score breakdown
Extraction
75
Source Trust
60
Citation Chain
20
Independence
30
Methodology
45
Freshness
95
Source
CoConstruct
Primary
Tier B
https://blog.associationofprofessionalbuilders.com/contract-or-spec-homes ↗
Source Article
Which Is Best? Contract Builds Or Spec Homes?
One question that is never far from a residential home builder's mind is…
Is it worth it?
Why don’t I cut out the clients and just build spec homes?
Some builders start out with that model, others turn to it after years of frustration, low margins and difficult clients.
And a lot more spend their ti…
Original Research
CoConstruct
· Original study ↗
Methodology
Study of 60,000 building contracts by CoConstruct
Methodology documented
Segmentation
Industryreal_estate
Cite this stat
Plain Text
residential home builders using fixed price contracts: 28% profit margin difference. Source: CoConstruct (2025). Via Lighthouse Intelligence -- https://lighthousedata.io/data/fixed-price-contract-margin-advantage-coconstruct
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<blockquote cite="https://lighthousedata.io/data/fixed-price-contract-margin-advantage-coconstruct" style="border-left:3px solid #2563eb;padding:12px 16px;margin:16px 0;font-family:system-ui,sans-serif;background:#f0f4ff;"><strong>28%</strong> -- profit margin difference for residential home builders using fixed price contracts<br><small>Source: CoConstruct (2025) · <a href="https://lighthousedata.io/data/fixed-price-contract-margin-advantage-coconstruct" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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