Creating a contract for hiring a general contractor

[Vincent M.]

Hi PB, I have been flipping houses for about 5yrs now and I am looking to take on more projects. Since I started I have acted as my own GC and hiring and managing the subs. I am about to hire a GC to take over so I can focus on acquiring more properties. I have found the person I want to act as my GC.

My question is: How do you set up your contract with your GC?

It seems like paying 10% on total renovation cost would incentive him to add cost to the projects. How do you come to terms on payment amount and incentive them to get the projects done quicker and cheaper?

Any tips for protecting yourself on the legal side would be great too.

Thanks for all you comments in advance, really appreciate it.