GC Partnership Advice

[Ray Hayward]

Hello, I am looking to partner with a General Contractor on a project. The conversation has been based on the exchange of “Sweat Equity” for Partnership Equity. I am looking for advice on how to make the Contractor a fair offer. Outside of GC services, he does not intent to put cash in the project. The GC believes his costs will average around 30-33% of market value as his reasoning for pricing is 33% Material, 33% Labor, 33% Taxes.

What is a reasonable % of equity you would offer a GC? Also, I would want to make it incentive based including hitting Timeline, Budget, Other? Do you agree?

I look forward to your general feedback and recommendations.