Replies

1. 
   Guest_ | Dec 10, 1999 07:44am | #1

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   Jeff, How much time, effort and money have you invested in this job that is too big for you to coordinate? If the only effort you have put forth is the labor involved in referring another contractor and pushing the buttons on your phone I am hard pressed to justify any "piece of the action". Some, myself included, would probably volunteer a finders fee and also keep you very high on the list for jobs that are within your capability.

   Now, if you are of continuing, measurable service to the other contractor regarding the operation of this particular job, then you would be justified in sharing the proceeds in an amount that would most likely need to be negotiated and contracted.

   Comments? Ralph

1. 
   Guest_ | Dec 10, 1999 07:55am | #2

   *Buck: I dreamed a dream, and I was making 15% for successful referrals. Then I woke up .......Sorry, just havin' a little fun.....Let's see, you introduce the contractor to the Owner, he sells himself and secures the contract, he takes over all Risk and liability........2% (two) would seem more reasonable, but I'm obviously missing something here.....

1. 
   Guest_ | Dec 10, 1999 08:08am | #3

   *Referral fee is more like it, 2-3% of job up to $50000.with less as job price goes higher. If you sold the job,handle the client follow-up,etc., it would be a sales commission,5-7%. I feel 15% of gross would be an outrageous sum considering that a contractor on a large job is doing good to NET 10% and many times less than that. Remember, profit is based on net,not gross, receipts. I also agree that handing over the job to someone more qualified without strings attached is better for future business. I always refer work to people I have an ongoing relationship with. They refer to me in return.

1. 
   Guest_ | Dec 10, 1999 08:11am | #4

   *Actually, the contractor I'm trying to bring in was the one who brought up a referral fee(he refered to a percentage...at this point that is what I'm try to determine...is there a standard...I'd like to appear slightly informed at our meeting!).At this point in time, I'm not sure if the clients will want me to manage and over see the job in their absence, or if I will just bid the trim/punchlist work and compare with his regular crews.Curious what percentages I should be expecting...From those who have done this before, so I can determine the amount of time/effort I should expect to put forth.Keep the replies comming.Thank You.Jeff.

1. 
   Guest_ | Dec 10, 1999 08:21am | #5

   *Jeff,If it were me, I would do what you have done (come here and ask) but I would then go into the meeting and pretty much confess that I really have no idea what the appropriate percentage is. Play it by ear after that.It sounds like he is a pretty upfront guy.Rich Beckman

2. 
   Guest_ | Dec 10, 1999 08:28am | #6

   *Rich, that's pretty much the game plan!Just trying to get a feel.W Swales reply is what I'm looking for.Thanks Guys.Any help appreciated!