We have represented owners in some of the most significant luxury residential projects in the country. Each design/construction project demanded careful attention to contract structure, risk allocation, and project execution, reflecting the unique challenges of ultra high-end homes.
$32 Million Mountain Residence
One such project involved the construction of a custom home in an exclusive mountain resort town, with self-funded hard construction costs projected to exceed $32 million. We drafted a sophisticated cost-plus agreement enhanced with robust cost-control mechanisms to mitigate the risk of inflated subcontractor bids. The agreement included a dynamic cost-tracking system giving the owner real-time visibility into bids, actual costs, and potential variances against the control estimate, with easy to digest updates monthly or as events transpire. Coupled with competitive bidding, not-to-exceed subcontracts, and strict change order procedures, this contract provided an unusual level of cost certainty for a cost-plus project, safeguarding the owner’s investment while promoting the successful realization of their vision.
$20 Million Penthouse Build-Out
We also represented the owner of an ultra-high-end penthouse renovation atop a skyscraper nearing 100 stories, with a construction budget of about $20 million. We negotiated a guaranteed maximum price contract that addressed issues such as preconstruction services, long-lead procurement, contingency and allowance usage, and a shared savings program. Beyond contract negotiation, we remain actively involved during construction — coordinating with the family office on funding, working closely with Chicago Title Insurance Company on monthly payment applications, and helping to manage communications among the owner, architect, general contractor, and building management. This ongoing role continues to ensure quality, accountability, and cost control throughout the multi-year project.
Other Owner Projects
In addition to these landmark matters, we have negotiated contracts for a $5.3 million luxury home featuring custom millwork, high-end finishes, and sophisticated smart home systems; a $3.5 million vacation home with detailed provisions for payments, allowances, warranties, and risk allocation; and another home involving excavation directly next to a neighboring building, where we helped the owner comply with the Illinois Adjacent Landowner Excavation Protection Act and Chicago’s municipal code to protect against structural risks. These projects illustrate our experience safeguarding owners’ interests on the most high-profile projects and on homes with complex site or construction challenges.
Architect Experience Benefiting Owners
Our perspective is also informed by years of representing architects on luxury residential projects, where we have seen how design professionals approach scope, fees, and risk. That work has included:
- A $15 million residential compound spanning over 17,000 sq ft with an architect’s fee approaching $2 million
- A $6.5 million home of nearly 8,500 sq ft with a $900,000 design fee
- A 10,000 sq ft vacation home with an architect’s fee of more than $3 million
- A $17 million, 12,000 sq ft home designed to accommodate an art collection
- A $13 million, nearly 10,000 sq ft home with a $1.5 million design fee
Because we understand what motivates architects and the pressures they face during negotiation, we can anticipate issues and structure agreements that protect owners’ investments while promoting productive collaboration with their design team.
General Contractor Experience Benefiting Owners
We have also represented general contractors in multi-million dollar luxury residential projects, which gives us insight into the construction side of the table. That work has included projects of $5 million, $4.6 million, $4.2 million, $3.4 million, $3.1 million (8,000 sq ft), and $2.7 million, as well as additional custom homes in the $2 million to $2.5 million range. These matters sharpen our understanding of how contractors approach fee structures, contingencies, scheduling, and risk. When we negotiate on behalf of owners, that knowledge allows us to align the contractor’s incentives with the owner’s priorities, protecting budgets and ensuring project delivery at the level of quality these homes demand.
We Get Ultra High-End Residences
When we represent owners on ultra high-end residential projects, we draw on this breadth of experience — from the largest custom homes in the Mountain West, to urban penthouses, to multimillion-dollar urban homes with complex site challenges — and combine it with our knowledge of the contracts most often used in this space. We regularly work with cost-plus agreements, guaranteed maximum price contracts, stipulated sum agreements, and custom owner-contractor agreements, as well as heavily negotiated American Institute of Architects (AIA) forms tailored for luxury residential work. By bringing together this experience with owners, architects, and contractors alike, we provide owners with the insight and leverage needed to protect their investment and achieve successful outcomes on their most important projects.
Contact us today to discuss how we can help safeguard your investment and bring your luxury residential vision to life.
