Project manager percentage question...

[Lori Hunter]

We are about to begin project managing a renovation project and wanted clarification on something...

We will be collecting 10% of the total rehab cost.  Of course, this should include costs of ALL the materials such as tiles, sinks, vanities, doors, tubs, etc as well as labor, and supplies, correct?  

Assuming this is correct, if the client is currently living out of town and ordering these materials on a credit card to be shipped to the site, how do we ensure we get compensated for our full project cost?  Do we ask that they hand over receipts?

Thanks in advance...