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Old 01-18-2007, 08:27 AM   #1
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Contractor fees

Here's the situation...

I have a log home under construction (almost done with rough-in) in an "up and coming" log home community. I am living about 7 hours away from the cabin and am serving as the Homeowner G.C. However, I have a neighbor that has volunteered to do A LOT of leg work (typically as would a G.C.). I would like to compensate him in some way, but I don't want to give a dollar amount that is not enough. Even though he is not expecting anything, I think if I'm going to give him something, it should be of appropriate value. Understand?

Also, I do know that he is thinking about doing this for other lots in the community, but charging a nominal fee to others. He has said that, but then also added, "like I'm doing for you but not charging anything". So, sometimes, I feel that he expects something despite me not asking for any help.

I just don't like feeling like I owe someone...especially when I have told him several times that he doesn't have to do any of this, I'm in NO RUSH to complete the cabin...if I could have it as a camping cabin...I would!

OK....I have given enough background on this....anyone have any ideas on a percentage or dollar amount I should give my overly helpful neighbor?


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Old 01-18-2007, 09:28 AM   #2
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Tough one - Is he retired and doing this for fun or is he maybe in need of the cash? It may make a difference. If he is retired and has no need for cash then I would just send him cases of beer or wine, gift certificates to nice restaurants, etc. Ie he could use the money I would try got get a handle on how much time he is spending. When you see him slip him, discreetly, an envelope with cash. I would say $50 per hour would be a good amount. I wouldn't discuss the hours, the time or the money with him. Just hand him an envelope and say thanks. he likely won't open it on the spot. If you give him too little he will be insulted. If you give him too much there is little down side unless he is a jerk and starts trying to rack up hours looking for more cash.


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Old 01-18-2007, 11:40 AM   #3
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He is retired. He started "helping" at first...he just refered guys that would do great work for a good price. But a lot of these guys need a G.C. for the materials...they just know their labor for a particular job. So, he figures out their materials and we go from there. The current "small job" I am having done in the cabin is the first time he has figured out the materials.

Like I said, he does talk about doing this for everyone in the community "for a nominal fee" as they start to build. However, he has never asked or implied that I pay him. Of course, I have bought him and his wife a couple of dinners, merely to show appreciation. But I just don't want to offend, if I give too low of an amount.

It's a tricky situation!
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Old 01-18-2007, 01:50 PM   #4
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My GC fee is a flat 10% of the project, materials and labor. Any less is not feasable for the time involved.
Ladwig Construction
Hennessey, Oklahoma
405 853 1563

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