Partnership approaches

[Dana Regan]

I am starting a partnership for flipping.  I am responsible to find the property and funding, my partner does the renovations (the contractor- including labor and expenses) and we share the profit.  He wants a bonus on cost savings on expenses if he comes under budget (which would give him the incentive to estimate high on expense estimates), and does not want the cost of his labor to be included in the expenses to determine net profit.  On the other hand, I want the cost of financing (points, interest and carrying costs) included in the expenses.  I am sure someone else has figured this out

Can anyone share their model of this with me?  For example, when we determine costs- are the finance costs to be included? are the costs I pay him to do the work included? then we split profits? or are only actual out of pocket expenses included in the expenses to determine the costs?

I need a model that gives him the incentive to get it done under budget, and one that gives me the incentive to find the lowest cost of financing.  

Thanks for any advice!!!

Dana