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Old 07-24-2011, 05:17 PM   #1
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How much percentage should a contractor charge for an outside job?


How much percentage should a contractor charge for an outside job?

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Old 07-24-2011, 05:18 PM   #2
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How much percentage should a contractor charge for an outside job?


10 to 20%.

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Old 07-24-2011, 05:19 PM   #3
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How much percentage should a contractor charge for an outside job?


The maximum amount they can convince someone to pay them
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Old 07-24-2011, 05:26 PM   #4
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How much percentage should a contractor charge for an outside job?


Hey thanks for the reply. But I'm talking about a job where he is not doing anything other then calling them to come. for example calling a guy to tint the windows. He's doing a lot of other work for me and I have no problem paying the percentage where it is actual work, but do i need to pay him 20% on a $5,000 job for making a phone call???

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Old 07-24-2011, 05:32 PM   #5
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How much percentage should a contractor charge for an outside job?


Quote:
Originally Posted by shane09 View Post
Hey thanks for the reply. But I'm talking about a job where he is not doing anything other then calling them to come. for example calling a guy to tint the windows. He's doing a lot of other work for me and I have no problem paying the percentage where it is actual work, but do i need to pay him 20% on a $5,000 job for making a phone call???
Would you have had the knowledge to make the call on your own? And know you were finding someone that knew what they were doing? Seems to me he earned a percentage.
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Old 07-24-2011, 05:37 PM   #6
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How much percentage should a contractor charge for an outside job?


So then this guy is acting as a general contractor then? He'll be organizing the schedule of work of the sub trades, making sure they do job properly on your behalf, making sure it comes in on time and on (or under) budget, etc, etc, etc...

A good GC is worth the added cost.
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Old 07-24-2011, 05:43 PM   #7
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How much percentage should a contractor charge for an outside job?


And who you going to call if something fails or doesn't live up to expectations? That too is his responsibility.
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Old 07-24-2011, 09:32 PM   #8
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How much percentage should a contractor charge for an outside job?


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I have no problem paying the percentage where it is actual work, but do i need to pay him 20% on a $5,000 job for making a phone call???
You're not paying 20% for "a phone call" - that may be the only actual physical labour involved in arranging and managing subs for your project (although it probably isn't), but physical labour is not the only thing people deserve to be compensated for.

People also deserve compensation for giving you access to their expertise, their experience, their buisness networks, and for bearing responsibility for things. I think there's a tendency to forget about this non-physical stuff when it comes to contractors and tradespeople.

Here's a few of the things you're paying your GC for over-and-above the phone call (some of these may not apply to your particular project):
  • You're paying for your GC's established working relationship with the sub, which will ensure that your job is done well, by someone competent.
  • You're paying for your GC's experience in organizing job sites and scheduling subs so that you don't waste time and money by having subs getting in each other's way, holding each other up, or having to tear out someone else's work to complete their own.
  • You're paying for the piece of mind of having someone you can hold accountable for problems if/when subs start playing the game of "pass the buck" with any problems that arise (fyi, framing problems are the plumber's fault, plumbing problems are the framer's fault, and plumbers and framers are to blame for electrical problems).
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Old 07-24-2011, 09:50 PM   #9
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How much percentage should a contractor charge for an outside job?


It's kind of like this



Once a large ship's engine failed. The ship's owners tried one expert after another, but none of them could figure how to fix the engine. Then they brought in an old man who had been fixing ships since he was a youngster. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.


Two of the ship's owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed! A week later, the owners received a bill from the old man for one thousand rupees.

"What?!" the owners exclaimed. "He hardly did anything!"

So they wrote the old man a note saying, "Please send us an itemized bill."

The man sent a bill that read:


Tapping with a hammer ........................ Rs 10.00

Knowing where to tap .......................... Rs 990.00
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Old 07-24-2011, 09:55 PM   #10
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How much percentage should a contractor charge for an outside job?


Willie T - there is a law case in the us where an attorney took a 100,000 $ fee for one phone call.

Similarly to your Indian Mechanic. He wasn't getting paid for his work, but for his connections.
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Old 07-24-2011, 11:36 PM   #11
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How much percentage should a contractor charge for an outside job?


If you don't want to pay the 20% then just take care of it on your own and save the money. With that being said here is one for you Last year I was the GC for a remodel on a building and did the 1st phase no problem. On the second phase the owner wanted to save money so he got his own bids on some of it and told me I was to high I ended up walking away from the job and later found out nothing he got bids on was per plan. That was a year ago and he still has not gotten the job signed off by the city. In my opinion do not insult the GC, if his cut is 20% then do it he has more then just 1 phone call to make.
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Old 07-24-2011, 11:51 PM   #12
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How much percentage should a contractor charge for an outside job?


Of course he deserves to be paid a percentage, those "phone calls" are project management. He knows who to call, when to call (schedule) he is familiar with the estimating/quoting process, he is familiar with the business and pricing... He will be able to ensure that the subs show up and complete the job properly. Liability will be covered, etc.

Some people in this world do nothing but "make phone calls" and schedule things. What you assume takes five minutes may take 2 hours of phoning different people to get quotes, playing phone tag, etc. There is a lot more behind the scenes work that you would think.

this is a common business practice and he would not be running his business properly if he did not do this.

I've seen nightmares of people trying to avoid this cost on a bigger job, and try to manage it themselves. Often they are left with a project 50-75 percent done, with issues, and they have no money left.
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Old 07-26-2011, 09:18 AM   #13
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How much percentage should a contractor charge for an outside job?


All right people I see your points, thank you for making it clear.

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