# RMO compensation



## sage2b (Oct 14, 2008)

I am trying to find out what would be fair compensation for being a RMO for a remodelling firm. I have recieved several offers to be one with compensation ranging fron $200 a month to $850. All of which seems lowball to me. Would appreciate hearing from other RMO's with their input and a general idea of thier compensation


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## rbsremodeling (Nov 12, 2007)

sage2b said:


> I am trying to find out what would be fair compensation for being a RMO for a remodelling firm. I have recieved several offers to be one with compensation ranging fron $200 a month to $850. All of which seems lowball to me. Would appreciate hearing from other RMO's with their input and a general idea of thier compensation


I don't do monthly so this may not apply but I get about 250k a year off my RMO's


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## sage2b (Oct 14, 2008)

How do you charge then as a percentage of gross or net or what. and i appreciate any info you may have thanks Kenn is my name


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## JumboJack (Aug 14, 2007)

rbsremodeling said:


> I don't do monthly so this may not apply but I get about 250k a year off my RMO's


 :laughing:


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## Chris Johnson (Apr 19, 2007)

Ask them why they need you as the RMO.

YOU are responsible personally for everything that happens as the RMO, this includes, taxes, insurance, comp, quality control, etc. etc. 

I ask again, why do they need you as an RMO as opposed to them getting their own license?

The only reason they cannot get a license would be A) Lack of Experience or B) Felonies

You want your name on either of those?


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## sage2b (Oct 14, 2008)

Chris Johnson said:


> Ask them why they need you as the RMO.
> 
> YOU are responsible personally for everything that happens as the RMO, this includes, taxes, insurance, comp, quality control, etc. etc.
> 
> ...


Good point but i would like to have a source of income and semi retire.


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## orson (Nov 23, 2007)

For those of us who live in states without licensing, what the heck is an RMO?


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## Chris Johnson (Apr 19, 2007)

RMO is Responsible Managing Officer, essentially the state has someone to hold accountable for any issues arising that the CSLB needs to be involved with.

Sage, unless you know these guys, check them out (at their expense) and have full access and say to the day to day operations of the company and are recieving a % compensation as well as expenses I would walk away from this pretty quick.

I too get calls and emails regularly, the last email looked like my 8 year old wrote it, when the guy called me a few days later I laughed at him, if he can't comprehend the english language how does he run a business. Not saying all idiots can't run a company, but the % of them that can are little to few. 

Just because a guy is a good craftsman/journeyman doesn't entitle him to be in business for himself. BE CAREFUL


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## sage2b (Oct 14, 2008)

thamks for the sound advice chris


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## BuilderOne (Oct 13, 2008)

orson said:


> For those of us who live in states without licensing, what the heck is an RMO?


thanks. I was wondering but didn't want to ask:laughing:


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## BuilderOne (Oct 13, 2008)

Chris Johnson said:


> RMO is Responsible Managing Officer, essentially the state has someone to hold accountable for any issues arising that the CSLB needs to be involved with.
> 
> Sage, unless you know these guys, check them out (at their expense) and have full access and say to the day to day operations of the company and are recieving a % compensation as well as expenses I would walk away from this pretty quick.
> 
> ...


Wow, that sounds really risky. There is an old saying ......"we don't need no stinking RMo's"


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## BKFranks (Feb 19, 2008)

Chris Johnson said:


> Sage, unless you know these guys, check them out (at their expense) and have full access and say to the day to day operations of the company and are recieving a % compensation as well as expenses I would walk away from this pretty quick.



What would be a fair percentage?


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## Grumpy (Oct 8, 2003)

I had one of my subs contact me. He was doing gutters for me and stopped being a sub, then he wanted to be a roofing contractor and approache dme about getting a license. I set him down the path, he failed like most people do, even me. He failed again, still not uncommon. He really wasn't qualified to have the licesne IMO having very little roofing experience. He approcahed me about carrying his license, as I can being a qualified party I can apply my qualifications to at most 3 companies. I told him I'd think about it, he brought it up again, I said give me more time to think about it, he brought it up again. Finally I told him to insure him I want 1.5% of his net sales a minimum of $1,000 a month. 

He still doesn't havea license and is roofing, well subbing it out to other sal called roofers, none of them have a license and he's not pulling permits either. That's the way it goes, but it's too bad really because he was one of my best gutter subs. When he was on the job I naver had a problem with the quality.


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## Chris Johnson (Apr 19, 2007)

BKFranks said:


> What would be a fair percentage?


 
Good question...what's the project? what's it value? you have to see the 5-W's before making that call.


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## Gabriel7777 (May 4, 2018)

Rmo compensation


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## daffysplumbing (Oct 16, 2017)

How did this thread reappear after 9 years.

I am fairly sure it is against the law to be an RMO (Responsible Managing Officer). for solely the money. You are supposed to be a RMO because you seriously own, share and perform a portion of the running the company you are an RMO for. The keyword in RMO is 'MANAGING'. You are supposed to Manage the company you are an RMO for.

As an example, I have contractor license and I own a company in Los Angeles. I want to start a branch company in San Francisco. I don't want to run 100% of the company located 420 miles away from my Los Angeles business because I will lose money in Los Angeles while making money in San Francisco. I don't want to hire workers to run the San Francisco business because I don't believe they will have a serious interest in the business. So, I find someone who who wants to run and own the major portion of the business, but that person cannot own 100% of the business because I think an RMO in California must own 25% of the business and must also do 25% of the actual management. My percentages may not be exactly correct.


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## cwatbay (Mar 16, 2010)

daffysplumbing said:


> How did this thread reappear after 9 years.
> 
> I am fairly sure it is against the law to be an RMO (Responsible Managing Officer). for solely the money. You are supposed to be a RMO because you seriously own, share and perform a portion of the running the company you are an RMO for. The keyword in RMO is 'MANAGING'. You are supposed to Manage the company you are an RMO for.
> 
> As an example, I have contractor license and I own a company in Los Angeles. I want to start a branch company in San Francisco. I don't want to run 100% of the company located 420 miles away from my Los Angeles business because I will lose money in Los Angeles while making money in San Francisco. I don't want to hire workers to run the San Francisco business because I don't believe they will have a serious interest in the business. So, I find someone who who wants to run and own the major portion of the business, but that person cannot own 100% of the business because I think an RMO in California must own 25% of the business and must also do 25% of the actual management. My percentages may not be exactly correct.


Actually it is 20% as an RMO. I've been an RMO twice, and, many times it's just a scam. It depends on whether or not you are really vested in the company.

The other part is, whether or not the CEO and the rest of the board are really interested in you managing the work. The instances in which I was involved all started out ok, but then turned south, sometimes quickly. With you only having 20% interest on paper, and, one or two others owning 80%, you soon find out that you are just another employee, who got hired just for the license. They majority owners have their way of running the business whether you like it or not. 

The other part of the RMO situation is that there are plenty of license holders who "rent" out the license. They are never on site, in fact, they may not even be in the same state. 

As far as compensation, again that falls under the agreement with the majority owners. You may just get a higher salary than the regular workers, or, you find out that 20% doesn't mean squat. For one firm, I got one profit sharing check in the 4 years where I was the RMO. I never saw any financials. I got a sneaky suspicion that the monies were split between the CEO and his long time pal (who supposedly had a 25% stake).


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