Several big-picture factors are shaping remodeling fees this year:

  • Material costs: Lumber, steel, specialty windows, and custom cabinetry are still higher than pre-2020 averages, and custom finishes often require longer lead times and premium pricing.
  • Labor market: Skilled carpenters, tile installers, and finish trades are in high demand. Quality crews cost more, but they also help your project stay on schedule and reduce rework.
  • Code and permitting requirements: Metro Nashville and surrounding communities continue to refine building codes around energy efficiency, structural requirements, and safety. Meeting these codes takes time, expertise, and often higher-end materials.
  • Customization expectations: Homeowners increasingly want fully custom layouts, unique built-ins, and indoor–outdoor living spaces that flow together. That level of detail requires more design and coordination up front.

How Contractors Typically Structure Remodeling Fees

Even though every residential contractor in Nashville has their own approach, most fee structures fall into a few common categories:

Fixed-Price (Lump Sum)

You receive a single, all-in number based on a defined scope of work and selections.

Pros:

  • Predictable; you know the total before work starts.
  • Helpful for homeowners who need to stick to a strict budget.

Cons:

  • Any change order (new tile, moving a wall, adding a window) usually increases the price.
  • The contractor has to build a contingency room for unknowns, so the number may look higher up front.

Cost-Plus

You pay the actual cost of labor and materials, plus an agreed-upon contractor fee (either a percentage or flat fee).

Pros:

  • Very transparent; you can see where every dollar goes.
  • Flexible if your design evolves during construction.

Cons:

  • Final cost can creep up if you expand the scope or choose higher-end products.
  • Requires trust and good communication.

Time & Materials

You pay for the crew’s time (hourly or daily rates) plus materials, often used on smaller or more open-ended projects.

Pros:

  • Good for projects with unknowns (older homes, exploratory demo).
  • Easy to adjust as you go.

Cons:

  • Harder to predict the final total.
  • Requires frequent check-ins to stay aligned on budget.

Design–Build Fees

Some firms handle both design and construction in-house and may charge:

  • A design retainer for plans and selections.
  • A construction fee (fixed-price or cost-plus) for the build itself.

What’s Typically Included in a Remodeling Estimate?

When you receive a proposal from a residential contractor in Nashville, you’re not just paying for a demo and rebuild. A detailed estimate usually includes:

  • Project management & supervision – scheduling, inspections, daily oversight, and client communication.
  • Labor – carpenters, painters, tile setters, electricians, plumbers, and other specialists.
  • Materials – framing, drywall, insulation, tile, flooring, cabinetry, countertops, fixtures, hardware, and more.
  • Subcontractors – licensed trades like electrical and mechanical when they’re not in-house.
  • Permits and inspections – fees to the city or county for required approvals.
  • Waste removal – dumpsters, hauling, and cleanup.
  • Overhead & profit – insurance, licensing, vehicles, office staff, warranties, and a reasonable profit so the company can stay in business to support you long-term.

How a Residential Contractor in Nashville Builds Your Estimate

When you meet with a residential contractor in Nashville, they’re pricing more than just square footage. They’re also thinking about:

  • Neighborhood standards and property values in areas like Green Hills, Brentwood, Franklin, and Forest Hills. 
  • Site conditions, like tight lots, sloped yards, or older structures that may need extra structural work.
  • The availability and cost of trusted local trades they’ve worked with for years.
  • The level of finish that fits both your taste and the character of your home.

Donnelly Timmons: Expert Residential Contractor in Nashville

Donnelly Timmons & Associates is a premier custom home builder and residential contractor serving Nashville, Brentwood, and Franklin. With more than 20 years of experience, our team handles everything from kitchen and bathroom renovations to outdoor living spaces and custom home additions. 

Whether you’re dreaming of a reimagined kitchen, a new primary suite, or a full-scale renovation, reach out to us at Donnelly Timmons & Associates to start a conversation.