Has anyone ever come had a similar situation?
I am a GC that usually does whole houses but am currently developing a basement for an interior decorator. We have signed a cost plus contract and have made it all of the way to drywall. My finish carpenter is on another one of my homes right now, so we would be delayed about 14 days if we waited for his schedule to open up. The HO suggested using a guy that she has been working with for about two years. I have met him and he seems like a reasonable guy to work with. He has offered to not only match my guy’s price, but beat it by $500.00 as a favour to her. That’s o.k. by me, but now the HO has said that she wants to pay him directly, outside of our contract, in order to save my project management fee (15%). Since he is supplying and installing all doors, base and case, etc. That would mean a reduction of about $6000.00 from my total bill, or $900.00 out of my pocket.
I think that this could turn into a deal breaker for both of us.
btw, my contract adresses this by saying that I would approve of any external trades in writing first (which I have not).