When planning a medical clinic fitout—whether for a radiology practice, dental clinic, or GP centre—the choice of contract type can have a major impact on your budget, timeline, and peace of mind.
Two of the most common models are:
- Fixed Price Contracts
- Cost-Plus Contracts
Both have their place in medical fitouts, but which one works best for you depends on your priorities around financial control, transparency, and risk management.
What Is a Fixed Price Contract?
A Fixed Price Contract is where the builder provides a total, agreed-upon price for your project upfront. This means:
Pros:
- Budget certainty: You know the cost from day one, which is vital for doctors managing loans and lease agreements.
- Clear scope: All inclusions and exclusions are defined at the start.
- Easier finance approvals: Lenders often prefer fixed price contracts, as they can clearly see the total loan amount.
Cons:
- Less flexibility: Any variation outside of the scope will trigger additional costs.
- Potential for shortcuts: Some builders may underquote initially and cut corners to protect their margins.
- Slower approvals for changes: Variations must go through formal processes.
Related Reading: Understanding Building Permits for Your Clinic Fitout (example internal link – adapt to your actual post)
What Is a Cost-Plus Contract?
A Cost-Plus Contract is where you pay the actual costs of labour and materials, plus a margin (usually a percentage or fixed fee) to the builder.
Pros:
- Flexibility: Easy to adjust the scope during the project. Perfect if you want design freedom mid-fitout.
- Transparency: You can see all invoices and expenses—ideal for doctors who want detailed cost breakdowns.
- Collaborative approach: Encourages open communication and trust between builder and client.
Cons:
- Uncertain final cost: Budgets can blow out without strict oversight.
- Financing challenges: Banks may hesitate without a guaranteed contract sum.
- Time consuming: Reviewing every invoice can be overwhelming.
Related Reading: How to Budget for Your Medical Fitout (example internal link)
Which Model Works Best for Clinics?
For medical fitouts, both models can work—but the choice depends on your priorities:
- Fixed Price is best if you need certainty and have a well-defined scope (e.g., a GP clinic with standard consultation rooms).
- Cost-Plus is best if you value flexibility and transparency, especially on complex projects (e.g., radiology or IVF clinics with specialised equipment).
At SoulMed, we often see doctors leaning towards fixed price contracts because of financial control—but in some cases, cost-plus makes more sense when specialist equipment layouts change during the design and build.
Trust, Transparency, and Financial Control in Medical Fitouts
Your clinic is a long-term investment. Whether you choose fixed price or cost-plus, the success of your project ultimately comes down to:
- Trust in your builder
- Transparency in communication
- Clear financial planning
That’s why SoulMed provides detailed cost breakdowns, scope definitions, and project tracking—so you always know where you stand.
Supporting Resources
- Victorian Building Authority – Types of Building Contracts
- Business Victoria – Understanding Building Permits
- City of Melbourne – Planning and Building Guidelines
Related SoulMed Content:
Conclusion
The decision between Fixed Price vs. Cost-Plus contracts comes down to what matters most for your clinic project: budget certainty or flexibility. Both models have advantages, but the best outcomes are achieved when there’s clear communication, aligned expectations, and a trusted partner guiding the process.
At SoulMed, we help healthcare professionals across Victoria make the right choice for their projects—balancing cost, compliance, and clinic growth.
Ready to discuss your clinic fitout? Contact SoulMed today.
