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Large Project Commissions

 
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Old 08-09-2019, 12:54 PM   #1
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Large Project Commissions


I have a question and I’m hoping to gather some insight here. What is a typical sales commission for a large project such as a university build? I’m seeing between 1 and 3 percent online. For example, if someone brings a project of 1.2 billion in size to a builder what are they looking at for a typical commission on that? Also would it be a percentage or a flat number? Thanks!
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Old 08-09-2019, 01:03 PM   #2
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Re: Large Project Commissions


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Old 08-09-2019, 01:47 PM   #3
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Re: Large Project Commissions


what position are you in to be able to swing a $1.2b job to someone?

who do you have to pay off?

a large reputable gc may not be interested in paying you off.

1.2b no bids? privately funded?

Often times large privately funded jobs, appropriate gc's are invited to bid on the project.
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Old 08-09-2019, 03:20 PM   #4
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Re: Large Project Commissions


We are brokering this project. It’s been a 2 year project for us working with the project owners and getting it to where it is now which is ready for a contractor to take it on. We have a contractor in place for it. We are just trying to figure out what the commission should be on it and how that should be structured for this. We have been doing a lot of research on it. We thought we had it figured out. But then we heard some things that has made us look at it again and make sure our paperwork is correct and reflects what it should be for a commission. First time brokering a project of this size. So if anyone has any experience on this it would be greatly appreciated.
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Old 08-09-2019, 08:44 PM   #5
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Re: Large Project Commissions


Who says the project is 2.5 billion. What if you're wrong and the project cost 3.5 billion to build? Are your still expecting a percentage?


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Old 08-09-2019, 09:03 PM   #6
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Re: Large Project Commissions


Its hard for me to imagine anyone who has any shot of a 36 million dollar cut asking strangers on the internet as part of the process. If you get anything out of this I will be impressed.
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Old 08-09-2019, 10:27 PM   #7
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Re: Large Project Commissions


They have 2 billion raised for it. Private funds. Banks. But the current face value is 1.2 billion. It’s turnkey EPC. And I know. It’s a shot in the dark. But sometimes you never know. Maybe someone pops up that has experience with commissions. Maybe consultants finding projects. Maybe they have paid commissions and what that average typically was. But I felt it was worth a try to see if anyone popped up that I could pick their brain on this. Like I said we have a rough range on it. I just wanted to do some additional research on it to see if we were hitting it where it should be on a project like this.
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Old 08-10-2019, 01:02 AM   #8
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Re: Large Project Commissions


why would an entity give you the authority to award a job to a gc?

some serious cash being traded.....

it is customary for a private money client to invite 2 or 3 competent gc's to bid high dollar jobs, thereby kicking your worthless service to the curb.

a private money client may also have a working relationship with a gc and simply call them again. very common.

just what service/value are you providing?
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Old 08-10-2019, 10:32 AM   #9
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Re: Large Project Commissions


If youíve been working on this project for two years, havenít they paid you for those services?

Will they be agreeable to you soliciting a commission on the sale of the job?


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Old 08-10-2019, 10:40 AM   #10
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Re: Large Project Commissions


We are mandated on the project by the board behind this project. And everyone has an NCNDA so nobody is going around us on it. This project is a no bid project. But yes many are projects with bidders. That’s common. Especially with large projects. If anyone has any replies on my commission question I would appreciate the wisdom. Thank you!
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Old 08-10-2019, 11:38 AM   #11
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Re: Large Project Commissions


I see your posts regarding this on other construction forums, your "story" seems legit, I guess I'm surprised on a couple of items:

1. Why would you publicly ask this question regarding such a large project for all current and future participants to see. Seems a little more discretion would be in order. And ask on forums made up of small residential contractors, identifying you and your company. .Joint Training Strategies Multinational Enterprise

2. Why didn't you work this out before you started such a long and what must have been a complicated deal.
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Old 08-10-2019, 11:55 AM   #12
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Re: Large Project Commissions


I’m new on here. I did a search for large commercial construction projects and this forum popped up so I joined and asked my question that I’m researching to ensure I have correct on this. If this is the wrong forum for that I will keep looking. I havnt gotten where I am today by being discrete. If I need an answer I go find it and I cross check my answers. Obviously certain information you don’t want out there. However, to get someone to answer my question I have to give some details otherwise they wouldn’t be able to accurately answer my question.

I thought I had the commission on this figured out like I’ve mentioned before but then I heard that there’s different ways to set this up for large projects. And it differs from government projects and private projects due to how things are paid out. Percentage. Flat number. Range of those. And differences between finders fee and sales commission and fee protection. I wanted to ensure our paperwork is correctly done to reflect this project.

I didn’t come on here to offend anyone. I went on this contractors forum to ask a question involving contracting. Thinking maybe someone might have an answer. Apparently I’m in the wrong place for my question. Which is ok. I will continue my search.

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Old 08-10-2019, 12:44 PM   #13
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Re: Large Project Commissions


No help here. I have no clue what your expenses are, services are worth or what liability you're incurring.
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Old 08-10-2019, 02:07 PM   #14
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Re: Large Project Commissions


Iíll give you the answer for 5% of your commission.....
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Old 08-10-2019, 04:25 PM   #15
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Re: Large Project Commissions


Lol the way it was going I expected to see that from someone.
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Old 08-10-2019, 04:41 PM   #16
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Re: Large Project Commissions


Curious what role you played in this transaction.
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Old 08-10-2019, 05:02 PM   #17
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Re: Large Project Commissions


You saved the GC marketing costs, that's about it.
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Old 08-10-2019, 05:07 PM   #18
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Re: Large Project Commissions


3.5 percent is typical from what I've seen here.



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