Now Contractor Asking for 15% markup to cover material and labor

[Matthew Metros]

I am working with a contractor that has been a pleasure to work with. Honestly, he has gotten the job done and has been honest with me. There have been delays on the project that I have had to eat up (3 Months), but overall, there have not been concerns.

The project is wrapping up and he has said due to all the unforeseen circumstances, that he really did not make money on this project and was asking for 15% of the total contract to make some profit.

As a good guy - I totally understand this. But how do I know he is not taking advantage of me? To be honest, I understand his situation might not be ideal, but this is business. Sometimes in business, you have to take lower or no profit, because you did not execute properly to begin with. It also puts me in a poor situation because:

a) It affects our relationship based on the decision I make here

- If I say NO, then I look like a jerk and he may not want to work with me in the future (I like him enough in many other ways where I would still work with him)

b) It affects my ability to operate & grow

- Asking for more money obviously puts financial constraints on my ability to invest and maintain financial security over the portfolio. I come from a good place, I just do not think he sees this side of things.

As a new investor, what are the next best steps for me to ensure I keep all sides happy?

Ideas:

- Request itemized invoices that outline the supplies, subcontractors, workers on the project, and materials purchased?