Profit share with contractor question!

[Ben C.]

Hi,

I'm considering partnering with my contractor on a flip. He has a lot of experience running job sites and I have a lot of experience finding properties and structuring deals. So on paper seems like a good match. 

We are thinking we will both put in capital plus he will do the job for cost. Then we are thinking we will profit share based on the % of equity put into the project. Or is this not fair since he will also be missing out on all the profit from the construction?

Please let me know how you structured these deals with your contractor and what checks you put in place to keep them honest (I trust him but always want to verify) that they aren't marking up their construction costs at all. 

Thanks.