Builders \" now that we got em what are we going to do w/ em\"

Jamie_6

We just completed a small radiant garage where a builder had called me. He had asked me to price out some radiant so he could show it to the homeowner (@ the HO request). When I delivered the bid to the GC he said he was embarrassed to show it to the HO. He claimed it was a 1/4 of the price of the forced air systems installed in the house. Then he gave me the HO # and told me to take care of it. So I did, the HO signed the contract and we installed the radiant. Now the GC is pissed & wants me to give him 18% because he said I was his contact?

What to do?

Attached is another little job we just finished up!

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Mike Kraft_2

Now thats a pickle

I don't know you and the builders history together.As an outsider looking in I would suggest to the builder to get his 18% elsewhere.He sort of put the cart in front of the horse.So IMO he shot his own foot(cliche morning).I would not budge on my price.He should of had the proffesional attitude and present you to the HO with your proposal.He should of then discussed the cost with his rightfully deserved % as acting GC.I think you need to stand your ground!

cheese

Dave Yates (PAH)

humnnnn

If he sent you to the HO & failed to mention he wanted you to add a % for him, he's out of luck and shouldn't be shaking you down. He said the price was too high, right? That he was to embarrased to present it to the HO, right?

If you expect to work with him again or want to, you might offer him a smaller cut - say 3% to 5% as a sales commission, but if he really wants the 18%, then he should be presenting his case to the HO's while explaining that there was an inadvertant slip up on his part by having you present them a price without his fee. Either way, it really shouldn't come out of your pocket.

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Constantin

No way

I am not a lawyer, heck, I'm just a homeowner. However, that 18% has to come from the HO's, not you or any other trade (that is, unless you were told to show a 18% commission adder to your proposal before the grand total). The GC messed up, plain and simple.

As I see it, the GC shot himself in the foot, thinking that there was no way the HO's would spring for the "expensive" radiant heating option. Now he's in recovery mode, because he probably was planning on charging the HO 1/2 of your price for the forced air system and then pocketing the difference (if his haughty statement re: relative cost is correct, which I doubt it is).

I think a much greater challenge is how your coming interactions with the GC could really sour the job. As we all know, a GC can make your life downright miserable. Never mind active sabotage...

One last option you could employ (if the HO's are reasonable) is to ask them if the GC got 18% on top of every option they're installing in the house. For all you know, they're going to be OK with it, and the GC is simply trying to squeeze you for even more $$$.

While we'reonly being told one side of the story, this GC doesn't seem to warrant return business, IMHO. Therefore, throwing him anything more than a sales-commission bone (if that) is likely a waste of money. Good Luck!

Ken_8

Jamie,

You state the GC asked you to deal with the HO directly,

"Then he gave me the HO # and told me to take care of it. So I did, the HO signed the contract and we installed the radiant."

This eliminates any obligation on your part to have anything whatsoever to do with the GC. Since you dealt directly with the HO, any and all liabilities to the GC are non-existent! Not so the GC's electrician, framer, plumber, mason, roofer, etc. If those trades worked as subs to the GC, his insurance and liabilities are fully exposed and he assumes risk in their work. Under THAT sceneario, he has risk both from the work they did - as well as financially should the HO not pay him - he still must pay them.

In your instance, he incurs neither financial nor product/labor liabilities whatsoever!

Bottom line is, had he wanted a "taste," that should have been stated from jump street - and wasn't. Suggest to him your appreciation of making a "connection" for you, but assure him the next time - if there ever is one, you can work something out, but not for this one.

I know you already knew all this. You just wanted us to confirm you're doing the right thing.

I suggest you already have.

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jerry scharf_2

I like Dave's idea

Jamie,

If you have any established sales commission rules, that's where to put this. He could either take it or not, but as Ken pointed out so well, you assumed all the liability and financial risk. It's also important to note that the HO asked for this and it wasn't an upsell by the GC. That makes it more a finders fee than a true sales commission, you did the selling.

I think the GC is just looking at what 18% of the radiant would have meant for the profit on the job, and is whining about how it turned out.

There was no agreement, verbal or written, that is in place between you and the GC realtive to this job. On that ground he has no legs. If there is a real fear of damage to the system during the rest of constructions, I would take lots of pictures and walk the owner through the whole project. That establishes the state you left the system at. Personally, I'd rather pay the commission rather than fight this out.

hang in there

jerry

Weezbo

Sounds like Tripe to me.

Thank the G.C. and state that you lived up to your agreement,that you are a man of your word and did your work faithfully and in a timely fashion.at no time was there any mention of some sorta surcharge for your work...tell him you could be doing this anywhere all day long and then thank him for the opportunity for the work and dont ever go back for seconds. tell him your work speaks for itself. do this infront of the homeowner and say that you stand behind your work. any finders fee the homeowner and G.C. will have to work out at this time as you have other work to do and would like to be PAID on the spot. You then say I dropped everything i was doing to be here do this and get out in a timely fashion. Now , You would like the same consideration . Pay me for my work and i am no longer in the equasion. ..... once paid,then say that you have to file the bill at your attorrneys today to prevent him filling the LIEN:) might seem over the top however the GC and HO both then figure fricking with you aint gonna work.