Fixed Price, Labour Only or Day Work: Hiring a Builder in Grenada

Two houses built from the same drawings in the same parish can end up thousands of US dollars apart, and the difference is often not the builder's skill but the type of deal struck with them. In Grenada, three arrangements are common: a fixed-price contract where the builder supplies everything, a labour-only deal where the owner buys materials, and day work where a crew is paid by the day.

Each shifts risk between owner and builder in a different way. Fixed price puts more risk on the contractor and usually costs more up front. Labour only can be cheaper but makes the owner responsible for ordering, storing and controlling materials. Day work is flexible but rewards slow progress unless someone is watching closely.

This decision guide explains how each model works in practice, which suits which owner, what any written agreement should contain and how to check a builder before money changes hands.

The three common arrangements

Fixed price (lump sum). The contractor agrees to build the house described in the approved drawings and specification for an agreed sum, supplying labour, materials and equipment. The owner pays in stages. The advantage is predictability; the catch is that the price is only as fixed as the specification is complete. Anything vague becomes a variation later.

Labour only. The builder supplies the crew and tools, and the owner buys cement, blocks, steel, timber, roofing and fittings, usually on account at one or two hardware suppliers. This is common for owners who live on the island and can visit the site often. It can save the contractor's mark-up on materials, but losses from waste, theft or over-ordering fall on the owner.

Day work. Masons, carpenters and labourers are paid a daily rate, with materials bought by the owner. It suits small jobs, repairs and finishing work, or a trusted foreman known to the family. On a whole house it is the hardest model to budget, because cost depends entirely on productivity.

Hybrids. Many projects mix models: a fixed price for the structure up to roof level, then labour only or separate trade contracts for finishes, electrics, plumbing and joinery. This can work well if the boundaries between packages are clearly written down.

Which model suits which owner

If you are overseas for most of the build, a fixed-price contract with an independent professional checking progress is usually the safer choice. You cannot be at the hardware store approving orders or counting bags of cement, and the single point of responsibility makes disputes easier to resolve. Expect to pay more for that certainty, and expect a good contractor to insist on a complete set of drawings before pricing.

If you live in Grenada, have time, and know or can hire someone who understands quantities, a labour-only arrangement can make sense. You control quality of materials, you see invoices directly and you can choose fittings as you go. The cost is time: someone must plan deliveries, check what arrives, secure the site and keep a running tally against the bill of quantities.

Day work is best kept for defined jobs with an obvious end point, such as tiling a floor, building a boundary wall or carrying out repairs after a storm. If a day-work crew is building a whole house, the owner is effectively the project manager and should act like one, with a programme, daily attendance records and weekly progress checks.

What the written agreement should contain

Handshake deals are still common, but on a project of this size a written contract protects both sides. At a minimum it should set out:

• the names of the parties, the property and a reference to the approved drawings and the written specification of finishes;
• exactly what is included and excluded, for example septic system, cistern, boundary walls, driveway, electrical and plumbing fixtures, painting and site clearance;
• the price, or for labour-only work the labour price, and the currency, noting the fixed EC$2.70 to US$1 peg if quotes mix currencies;
• a payment schedule linked to completed stages, such as foundations, slab, walls to ring beam, roof, plastering and finishes;
• a retention, commonly a small percentage of each payment held back until a defects period after completion;
• how variations are requested, priced and approved in writing before the work is done;
• a start date, an expected completion period and what happens during hurricane season or a declared emergency;
• responsibility for site security, insurance during construction, and removal of debris;
• how disputes will be handled, for example referral to an agreed engineer or quantity surveyor before anything escalates.

Reading a quote: quantities, provisional sums and exclusions

Quotes for a Grenadian house range from a single figure on one page to a detailed bill of quantities listing every cubic yard of concrete, every block and every length of steel. The detailed version is far more useful, because it lets you compare bidders item by item and price variations fairly when they arise. If your budget allows, a quantity surveyor can prepare the bill from the approved drawings, and every builder then prices the same document.

Look carefully at provisional sums and prime cost allowances. These are placeholders for items not yet fully defined, such as kitchen cabinets, tiles, sanitary ware or light fittings. A quote that looks cheap because its allowances are unrealistically low will grow as soon as you choose real products. Ask what each allowance buys in practice.

Finally, read the exclusions. Site clearance, excavation in rock, retaining walls, the septic system, utility connection charges, boundary walls and the driveway are frequently excluded or priced separately. On a sloping or rocky plot those items alone can be a large part of the total, so make sure every bidder has priced them on the same basis.

Vetting a builder before you sign

Recommendations in Grenada travel by word of mouth, which is useful but not enough on its own. A sensible vetting routine:

1. Ask for a list of recently completed houses and visit at least two of them, ideally with the owners present.
2. Ask those owners how the builder handled delays, variations and defects, and whether the final cost matched the contract.
3. Ask who will actually run your site day to day, and meet that person, not just the company principal.
4. Check that the builder can show proof of business registration and, where relevant, that workers on site are covered by National Insurance contributions.
5. Give every bidder the same drawings and specification, and compare the prices line by line rather than by the total.
6. Treat an unusually low bid with caution; ask what has been left out or assumed.
7. Have your lawyer or a quantity surveyor read the contract before signing.

Where builder relationships usually go wrong

Paying ahead of the work. Large advances "to buy materials" are the single biggest source of losses. Pay for work completed and verified, or pay suppliers directly for delivered materials.

Unwritten changes. A wider veranda or extra window agreed on site becomes a dispute at the final account. Confirm every change and its price in writing, even by a short dated message.

Unclear supply responsibilities. In labour-only deals, delays caused by late materials are a common argument. Agree who orders what and how much notice the builder gives before materials are needed.

No independent check. Owners often discover hidden defects only after plaster covers them. An engineer's inspection before each concrete pour costs far less than demolition.

Skipping the handover. Final payment made before a joint walk-through leaves no leverage for snagging. Walk every room with the builder, list defects in writing, agree dates to fix them and release the last money only when the list is closed.

Assuming the builder handles approvals. Make clear in writing who deals with the Physical Planning Unit, utility connections and inspections, and who pays the fees.

Frequently asked questions