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)

2025  · n=60,000  · CoConstruct

Projects with fixed price contracts had 28% higher profit margins compared to cost-plus or open book projects.

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Attribution: CoConstruct View source
Lighthouse Research Team
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Source verified Evidence graded
Value
28%
Unit
Percentage
Data Vintage
2025
Entity
residential home builders using fixed price contracts
Sample Size
60,000
B
Strong, reliable evidence

Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.

61/100 confidence

Single source - not yet corroborated

Extraction
75
Source Trust
60
Citation Chain
20
Independence
30
Methodology
45
Freshness
95
CoConstruct Primary Tier B
https://blog.associationofprofessionalbuilders.com/contract-or-spec-homes ↗
Confidence: 53/100 Vintage: 2025 Channel: Deep Crawl
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 ↗

Study of 60,000 building contracts by CoConstruct

Methodology documented
Industryreal_estate
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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