# Qualifier Compensation



## aikido-rich (Mar 16, 2013)

Gentleman,

My question today is about Qualifier Compensation.
Is there an industry standard that summarizes the compensation formula for large construction companies ? Does anyone know the math most Certified Contractors use to negotiate there stipend for qualification. The company I am looking at is grossing in the 30 million range presently with most of their contracts being governmental.

We are seeking opportunities in Florida and this is one that has been presented to us. The company in question has asked us to establish our level of compensation.

Thank You.


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## Kowboy (May 7, 2009)

aikido-rich:

As the qualifying agent, you are on the proverbial hook. Not only do you have to be compensated for your risk, I doubt I'd do it for less than 5%, but you must have say and control over the job. I'd also want some sort of agreement that they pay when things go south on you.

Joe


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## aikido-rich (Mar 16, 2013)

*qualifier*

Thanks Kowboy. Sage advise.


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## olligator (Nov 23, 2007)

I know some of the smaller companies down here have arrangements for a fixed base rate plus a % rate based on the job. I would base the % amount on the risk associated with each project, keep the % negotiable on a per-project basis to keep the company honest, yet fair to all the principles in the deal. Use the base fee as compensation for your license just to be attached to the business. I would say also get the T&C real clear for if/when/why/how you ever need to pull your qualification from the company too. CYA and all. Legal review of the deal would probably be a good idea considering the liabilities to you.


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## Toplessbimmer (Oct 15, 2021)

olligator said:


> I know some of the smaller companies down here have arrangements for a fixed base rate plus a % rate based on the job. I would base the % amount on the risk associated with each project, keep the % negotiable on a per-project basis to keep the company honest, yet fair to all the principles in the deal. Use the base fee as compensation for your license just to be attached to the business. I would say also get the T&C real clear for if/when/why/how you ever need to pull your qualification from the company too. CYA and all. Legal review of the deal would probably be a good idea considering the liabilities to you.


Percentage is over profit or gross?


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## Mordekyle (May 20, 2014)

3.5% of gross is a common arrangement 


Sent from my iPhone using Tapatalk


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## Kowboy (May 7, 2009)

I pay my plumbing qualifier $1,500.00 a month flat rate.


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## Big Johnson (Jun 2, 2017)

Kowboy said:


> I pay my plumbing qualifier $1,500.00 a month flat rate.


Did you take your test yet?


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