# appropriate 'cut' for a job



## AustinDB (Sep 11, 2006)

Considering a scenario where a fellow contractor "hands" me a job, say in the $5k range. Is there an accepted or appropriate finders fee for delivering the job? If so, that fee, would it be estimated/based on the labor only or total sales of the job?


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## Mike- (Aug 20, 2011)

72chevy4x4 said:


> Considering a scenario where a fellow contractor "hands" me a job, say in the $5k range. Is there an accepted or appropriate finders fee for delivering the job? If so, that fee, would it be estimated/based on the labor only or total sales of the job?


Take at least 15-20 %


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## JBM (Mar 31, 2011)

Real estate commissions co broked are 3% or less. This guy only refered a job to you.


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## griz (Nov 26, 2009)

Buy the guy a bottle of good whiskey & say "Thank You"...:thumbsup:


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## J L (Nov 16, 2009)

5% or a good bottle of scotch.


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## duburban (Apr 10, 2008)

i think i would base this off profit. i'd like to hear how others do it.


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## RobertCDF (Aug 18, 2005)

5k I'd probably just say thanks, we did 1 project in that range last year. I usually avoid projects in that price range they aren't worth it for such little money.


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## tgeb (Feb 9, 2006)

Fellow contractors "hand" me projects all the time, and I do the same.

I have referred Masons, Framers, Roofers, heck over the years I've probably referred all the trades, architects, engineers and builders.

I have never asked for a "cut". 
I give them job leads, they return the favor and send me leads.

That's how we roll.


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## griz (Nov 26, 2009)

tgeb said:


> Fellow contractors "hand" me projects all the time, and I do the same.
> 
> I have referred Masons, Framers, Roofers, heck over the years I've probably referred all the trades, architects, engineers and builders.
> 
> ...


I never thought twice about referring an appropriate job to a sub...:thumbsup: Never expected anything for it...was just the what comes around goes around rule...

I worked with a small group of GC's where it was not uncommon for us to refer a job to on another if we were too busy to take the job.

Sometimes a small job, maybe a big remodel or a house...

What difference did it make if I couldn't do it.

No money was ever expected for a referral....but depending on the job there was a bottle of booze or a top notch dinner somewhere...

We were a close group...not uncommon for a piece of my equipment to end up at someone's job, or me in a guy's garage grabbing a box of bolts or whatever...

Different times, attitudes & relationships... I miss those days...:thumbsup:

The epitome of honor amongst thieves..............................


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## Spaint90 (Dec 26, 2011)

I have a standing with a couple of other contractors in my area..if either one of us hands a job to another. we take 10% off the top. it keeps the playing field even, no favors owed. I have good realtionships with everyone i have ever done this with. but on the same token about 90% of most of my bids are labor costs. I know cabinet shops, and some remodel guys that do the same 10% finders fee if they get the job.


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## Jaws (Dec 20, 2010)

10% is too high. 15-20% ???? Really? I actively look for work to refer to my subs and business associates. We refer each other. Generally I refer a lot more than I get good referal s , but if they refers a lot, I give them some cash or more likely give them a bottle or a nice resteraunt gift card.Vendors, realtors, or someone like that 3% tops, AFTER they sign and pay the deposit. Only realtors ever ask for the referal s, vendors want them and know I will pay so don't bring it up.


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## Jaws (Dec 20, 2010)

Also agree with guy above, no money for 5 grand. Gave one finders fee this year to my appliance vendor, she refered us to a 1,000 sq ft addition and we gave her 1,000 in cash. She just gave our # to the lady, never asked for money or even told us she refered us. We just want to make sure she doesn't lose our #.


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## dakzaag (Jan 6, 2009)

jawtrs said:


> We just want to make sure she doesn't lose our #.


That statement right there is how you determine whether you want to divy out a finders fee. If you get good jobs from a referral, then the last thing you want is them to forget about you. Nothing says thanks more clearly than a gift certificate at a nice place to eat.


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## BamBamm5144 (Jul 12, 2008)

I am surprised someone feels like they are entitled money to referring someone for a job. I mean it isn't like that person sold it, all they simply did was mention a name.

I refer owners of other businesses all the time, even roofers if I am too busy.

It pays off when I get a call and ask how they heard of me and the person says Mr. Roofer referred you because he doesn't have the equipment to do this type of job, etc.


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## Jaws (Dec 20, 2010)

BamBamm5144 said:


> I am surprised someone feels like they are entitled money to referring someone for a job. I mean it isn't like that person sold it, all they simply did was mention a name.
> 
> I refer owners of other businesses all the time, even roofers if I am too busy.
> 
> It pays off when I get a call and ask how they heard of me and the person says Mr. Roofer referred you because he doesn't have the equipment to do this type of job, etc.


 Yeah I agree, but it is what it is. Subs I don't worry about, I refer them ALL the time to other contractors and clients. If they refer us to something good, I don't care if they expect it or not, they are getting a nice dinner .

Vendors on the other hand are different in my experience. The appliance lady is top notch, she stays very busy and deals with a lot of builders. She is an appliance store. I love kitchen remodels, match made in heaven. We refer a lot of stuff to her and use her exclusively for our work so we don't hand out cash often. But an addition that is a couple hundred thousand dollars in revenue? I don't mind giving a bump for that, how contractors do you think she deals with? A lot.


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## We Fix Houses (Aug 15, 2007)

I think if you just took care of the customer, I would be very happy with that. That's why I would refer you to a customer.


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## Jaws (Dec 20, 2010)

We Fix Houses said:


> I think if you just took care of the customer, I would be very happy with that. That's why I would refer you to a customer.


 My thinking too, but doesn't mean its hers. Like I said, doesn't bother me at all. I have only handed out a single referal fee this year, the rest was mostly from a large client list and networking. In fact that's only the second referal fee we've given in three years.

Giving the subs who refer a lot or to a good job, I appreciate it and want them to take the old lady out for a steak, usually once year, not all the time.


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## Oconomowoc (Oct 13, 2011)

One of my favorite "things", if that's what you call it, is referring work to my fellow friends in constriction. That's what they are - friends. I think of it that way because I would never recommend a contractor I didn't know personally and the ones I know personally always end up friends. Since I only have quality friends everybody I recommend does quality work. Funny how that works out.

Friends don't refer work and expect a "cut", at least my friends. This is part of what makes construction a great business.....relationships.

If your relationships are those who need a "cut" I would re-evaluate your relationships instead of trying to calculate what your forced to share.

That said, its a good idea to respect your relationships and that's a personal matter how respect is paid. For me and others here its the little things that matter over the course of time. In 2011 I have referred much work to my electrician and remodeling buddies and they have done the same.

One big happy family.


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## KnottyWoodwork (May 23, 2010)

griz said:


> Different times, attitudes & relationships... I miss those days...:thumbsup:


Those were the days I that I grew up in. Un-official sister companies :thumbsup:

While I never expect a cut, or gift for referring jobs.. I do always give a gift of some-sort. It's never expected, but always appreciated.

It may be a measely $5g job, but for many that is the difference between staying in business and shutting down. ESPECIALLY in these times.


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## jimmys (May 1, 2009)

"Hands me a job" sounds like a pre-qualified customer you don't have to Sell, just prepare docs and go. That's worth some good scotch or a meal any day. I never get such a thing, just a recommendation from a former customer. They get flowers or a gift basket, to keep the spigot from getting stopped up.
If your name was dropped, not worth that much unless it leads quick and simple to a contract.
Jim


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