Contract For Finders Fee?

 
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Old 07-23-2008, 06:33 PM   #1
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Contract For Finders Fee?


im a painting contractor and won a bid for a restaurant with the help of another painter. I am not experienced enough to handle a job of that size or estimate it. He will be doing the work and gave me his price to do the work. I added on about 10% to the bid for my profit. I plan on him doing the work under his license, his insurance, etc. and have him receiving the payment.

I dont have insurance that covers subcontracting. The insurance agency said it would be 10-15,000/year extra to cover subs.

I want to have a contract written up to state that all work will be performed by his business, and is reponsible for any issues related to the job. He is to pay me X amount of money for closing the bid and giving him the work.


I did this another time after I had moved from DC to NJ. I had a company take a referral for a school in DC to be painted and they did the work and paid me 500 bucks. The school took forever to pay and the people that did the work were shady about getting back to me. It was a frustrating experience because it took 6 months and i had no signed contract for referral/finders fee, other than emails back and forth. In the end I made 500 bucks for doing nothing more than making a few phone calls.

Any help appreciated!

Last edited by flashme18; 07-23-2008 at 07:32 PM. Reason: forgot something
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Old 07-23-2008, 07:33 PM   #2
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Re: Contract For Finders Fee?


It sounds like he's your sub. His profit is included in the price he gave you and you added your 10% for your profit. When they pay you after the job is finished, you pay him what you said you would.

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Old 07-23-2008, 09:37 PM   #3
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Re: Contract For Finders Fee?


again, I cant sub it out. I am not insured for that. If is going to do the work, the contract must be between restaurant and him. The contract should be for his fee plus mine plus tax.

Then he cuts me a check for finders fee after payment.

I need contract stating he does such and such work and is responsible for any law suit as a result of his labor. And, to pay me a fee for providing him a customer. aka Finders fee.

There has to be a standard form for this in the business.

again, not subcontracting.
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Old 07-23-2008, 10:03 PM   #4
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Re: Contract For Finders Fee?


10 to 15k for the policy? Just get a minimum policy with like a 300,000 limit that shoudn't cost that much, but it would probably offset the 10 percent of the total bid. Why don't you write a contract so that he pays you under your own business heading? will that not work? or do you own a business?>
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Old 07-24-2008, 07:24 PM   #5
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Re: Contract For Finders Fee?


You are going to have a hard time doing anything in my opinion. I do not know of any kind of form or contract for something like this. And if there was and I was the sub I would not agree to it. When you submitted the bid as far as the owner is probably concerned you will be held liable to anything that happens. If you do not know anything about doing this kind of thing (by your own admission) you need to stay out of it. If anything, you could have just told the sub to bid it but if he gets the job then pay you a referral fee. With that you probably could have had just a simple one page agreement and if it was agreed and signed, then you could give him the name of the client. That way he is not out, you are not out, and then it would be a win win for everyone.


As for the insurance part, you need to talk to another insurance agent. That sounds way too high. I don't think I pay that much and I am a general with 3 full time employees, two part time employees and numerous subs. With total revenues over 1m.
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Old 07-24-2008, 07:42 PM   #6
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Re: Contract For Finders Fee?


your insurance doe'snt cover sub...... this is normal , a sub contractor is a contractor doing work for you , any subcontractor have by law to carry liability inss. and work men comp. so if any accident happend bolt party are protected,
dont loose a buisiness over uncover subs

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