Contractor Compensation Question

[Joshua Wolpe]

I'm new to the site and had a question about GC compensation on a flip in Denver.  I have a contractor (good guy, have worked him in before, he's in demand on projects).  I'd like to work off a partnership with him to provide the most possible incentive, and I'm looking for the best structure to accomplish that.  While I'm providing all the funds for the purchase and rehab, I do think it's in my best interest to provide some percentage of the profit; and perhaps tie some incentive to staying on, or coming in below, budget.  Denver is a pretty hot market, and good contractors are hard to come by.  Any advice you have would be greatly appreciated.  Thank you!

[Account Closed]

I don't see why it should be necessary to provide him an incentive to do what he should do anyway i.e. complete the work in a timely manner and within budget. If he can't do that without an extra incentive, he won't do it with one.  It's called: professionalism.

If you like him and want him to want to work with you regularly, then strive to be the kind of customer that is a pleasure to work for i.e. pay him on time, don't micro-manage, be appreciative, etc.  We love that!