About 15 years ago I was in the building trades. I worked at framing, roofing, and masonry (laid brick, block, stone). My wife and I also built a small cabin by ourselves — laid out the footer, poured footer, laid block foundation, framed it, roofed it, plumbing, hired out the electric, etc etc. I also had some formal training (just out of high school) at a trade school for framing and layout, etc. — So, bottom line — I do have some experience in building. I’ve also built some pretty decent cherry furniture.
Now — flash forward. We live in Arizona now, and want to build an adobe house. Adobe structures are not unusual around here (see http://www.oldpuebloadobe.com/) and the banker has no problem with adobe. Neither does the building department — there are a few going up around here at the present.
The problem is the banker. Apparently the bank has had too many problems with owner/builders or owner/contractors and doesn’t want to fund my project unless I, at minimum, hire a General Contractor and pay him a consulting fee to oversee the job. — Now, I can probably go to another bank, but before I do, please tell me — how do I calculate a fair value for this “consulting fee”? I view this role as significantly less than if I hired a GC to do an GC job.
Basically this person would be signing a contract with me to oversee the job. I’m not sure, but I think this implies (the bank’s thinking anyway) that his insurance would cover my job site. But the main purpose of the bank seems to be that this person be available to lend his expertise if I need it and to make sure the sub-contractors are managed well.
Any ideas on how to calculate what I should have to pay this guy for his “oversight”? — That is, I think I’m going to have to negotiate this and I need some negotiating points.
So — can anybody help me? Thanks! Dan.
P.S. I have a very detailed set of house plans, blocks of “free” time to be at the job site to deal with problems, I have worked with subs before on other jobs at my present residence, and, as noted above, I’m fairly experienced with the various trades, etc.