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Old 10-04-2009, 12:49 AM   #1
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payment for project manager

I have a friend who has been acting as a project manager for a remodel in an office building for my medical practice. I have been paying his employees with checks through him. He has not taken any direct fees (he is a friend of the family) I want to pay him a fair amount for what he has done (basically acting as a contractor). Is there a percentage that is appropriate to give the contractor? For example, if the labor fees are $25,000, what would be the fair fee to give the person who has been bird-dogging all of this? I would really appreciate some help - this really nice man,is not going to "charge" me, but I want to pay him (in some way) what he is owed, but I just don't know the approprate fee. Thanks. ML


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Old 10-04-2009, 03:23 AM   #2
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Does he own the contracting company or work for them, or is he acting as a paper GC?

Either way, he's getting a pay check.

If he's showing up just to bird dog the project and isn't employed by the contractor, then pay him direct for the hours he is there.


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Old 10-04-2009, 04:32 AM   #3
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Its always difficult with friends, as they don't like to ask for money, and you feel if you guess and don't give them enough they will think you are dead tight. On the other hand you don't want to give them too much. I think the hourly rate as suggested is a good, fair idea.
I have the same problem with my thatched roof. My friend is a thatcher and he sometimes comes round and sticks a handfull of thatch in where the birds have nicked some for their nests. He never wants any money, so my wife always gives him a cup of tea and a cake. We also give him a dozen fresh hens eggs, as he does not have any chickens.
Sometimes people appreciate a present rather than money, so you could also treat him to a meal and night out down your local pub.
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Old 10-04-2009, 06:14 AM   #4
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15% is a typical GC fee. However compare actual versus estimated costs to see if he saved you any money or just did not do enough to justify a fee.
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Old 10-04-2009, 06:25 AM   #5
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did 1 for a friend's office park bldg,,, our deal was 50% of the savings + $100 day for early completion,,, he sent the ck to the Shriner's Hospital so everyone was happy 'cept he got the tax deduction & i didn't had it been direct, hourly wouldda been $80 per

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Old 10-04-2009, 08:21 AM   #6
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Project or construction management fees are different and are additional to the the profit margin mentioned above for a GC. Typically project management is figured on a percentage of the job determined by the monetary value of the job. For jobs up to $100,000 a fee of 10% for project management would be typical.


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