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What to pay contractor
Posted on 3/7/26 at 8:21 am
Posted on 3/7/26 at 8:21 am
I’m building a detached 12x16 building. I contacted a contractor, who quoted me $14,000. His quote does not include a contractor fee. When I asked about it, he said he wasn’t charging a fee
So he is building at cost of materials and sub-contractors labor.
I’ve worked with him in past. Great guy. Honest to the bone, so I know there aren’t baked in extra costs.
I’m going to pay him for his time and resources because he took time to coordinate subs and materials.
What would be a good rate to pay him? I’m thinking 20% of the job.
So he is building at cost of materials and sub-contractors labor.
I’ve worked with him in past. Great guy. Honest to the bone, so I know there aren’t baked in extra costs.
I’m going to pay him for his time and resources because he took time to coordinate subs and materials.
What would be a good rate to pay him? I’m thinking 20% of the job.
This post was edited on 3/7/26 at 8:33 am
4
Posted on 3/7/26 at 11:49 am to KTShoe
He's probably baking his fees into the price. Are you buying the materials and paying the subs?
Posted on 3/7/26 at 1:31 pm to sleepytime
Yes. I’ve worked with him before and I pay the lumber yard and the subs directly.
Posted on 3/7/26 at 1:34 pm to sleepytime
For comparison, I was quoted on a tuff shed for the same size at $400 more than him. The tuff shed did not include electrical, which will have 150ft trench dug up for the run. It also didn’t include installation and finishes inside.
Posted on 3/7/26 at 2:24 pm to KTShoe
quote:
Yes. I’ve worked with him before and I pay the lumber yard and the subs directly.
He's either doing you a favor or getting a kickback "referral fee" from the subs. While that may not be illegal, it can be considered fraud because it's skirting permitting/reporting requirements. As the contractor, he's taking on liability for the work at that job, even if you are paying the subs and even if you pull the permit yourself.
Posted on 3/7/26 at 3:18 pm to KTShoe
quote:
What to pay contractor
The agreed amount for the agreed level of service.
Posted on 3/7/26 at 3:51 pm to KTShoe
nobody works for free.
if he wants to do it for cost go ahead and let him I can’t imagine why he would do that but whatever. 3000 on a 14000 job would be fair if you want to pay him more anyway
if he wants to do it for cost go ahead and let him I can’t imagine why he would do that but whatever. 3000 on a 14000 job would be fair if you want to pay him more anyway
Posted on 3/7/26 at 4:18 pm to cgrand
I’m fairly confident he’s doing this as a favor. He’s a good man that has helped a lot of people. He’s been a contractor for 40+ years. I’m pretty sure he just like staying busy.
Thanks. I’m going to add in a fee but wanted to be in line with pricing for his service.
I had a budget for this build and I believe he waived his fee to keep the quote under it.
For a past project, he did some of the labor himself, which resulted in his price. This project, he doesn’t plan on any labor from himself so he basically offered access to his subs and material pricing along with project management.
Thanks. I’m going to add in a fee but wanted to be in line with pricing for his service.
I had a budget for this build and I believe he waived his fee to keep the quote under it.
For a past project, he did some of the labor himself, which resulted in his price. This project, he doesn’t plan on any labor from himself so he basically offered access to his subs and material pricing along with project management.
This post was edited on 3/7/26 at 4:19 pm
Posted on 3/7/26 at 4:20 pm to KTShoe
Why would he work for free? You pay everyone else directly? He’s a friend I’m assuming?
You sure the subs aren’t paying him? Would be odd way to do it.
I know plenty of cost plus GC’s that do remodel type of work, not full on new builds, that bake in a significant fee into their subs. They’ll quote something like $800/ day for painters and drywall. When they are really paying them $600. So their 15-20% cost plus is really closer to 40. I’m not hating on it, they do a great job and everyone is happy.
I just don’t know why someone would work for free unless he’s a friend, and then even still.
You sure the subs aren’t paying him? Would be odd way to do it.
I know plenty of cost plus GC’s that do remodel type of work, not full on new builds, that bake in a significant fee into their subs. They’ll quote something like $800/ day for painters and drywall. When they are really paying them $600. So their 15-20% cost plus is really closer to 40. I’m not hating on it, they do a great job and everyone is happy.
I just don’t know why someone would work for free unless he’s a friend, and then even still.
Posted on 3/7/26 at 5:49 pm to baldona
Most go !0% profit and 10% overhead. If he is some retired guy just helping, give the 10%, but if he is still legit with insurance and in business then give the 20%.
Posted on 3/7/26 at 6:56 pm to Donzi Tiger 1
Thanks. Appreciate the advice.
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