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Discussion Starter · #1 ·
Here's the quick version. I bid a demo job. the gc called me back to discuss. I did not have the capital right now to do it myself. I partnered with a guy that i have known for a while. The job is turning out to a multi million dollar job now. There are 4 ppl involved.2 guys that are on site every day and have machines there,that I know. 1 guy who schmooozed the gc with the ppl he knew,And me. I have my machines, a class A motorhome for an office there, and I brought the job to the table. I could/will learn alot and this may turn into a great relationship with the GC. It is a county job, so the money will be there. I just want to protect my interests and make sure that i recieve fair compensation. In casual talk, there should be $ 400,000 profit. i owe 1 guy money for when i subbed him out, and 1 guy owes me money.(not much)he doesn't have the best rep. They all know eachother and have worked together before. Some jobs went be bad. I want to know if anyone has had a similar situation, or if you can help me write up an agreement that would give me a fighting chance in court if it happened to go bad.
They all know that i am very capable and have proved myself for bringing the jobs to the table. Is there a sample contract for this? or do I just word it myself and say we equally split the profit 4 ways at the conclusion of the job? They definitely would not be working this job right now if I didn't bid it, and I have done about 15 jobs with the one guy, and actually owe him almost $10k for a year. I just want to cover my ass, I need this money so bad right now. Sorry to ramble............:thumbup:
 

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Nit, man you said alot, slow down, first off dont be surprised if your 400,000 dollar projection turns into 150,000. Secondly four guys equally involved spells trouble. Planning the details of the partnership on the fly is risky at best. If its not to late, talk to a lawyer, otherwise do your job, keep your eyes and ears wide open, and hope for the best. GMOD
 

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or do I just word it myself and say we equally split the profit 4 ways at the conclusion of the job?
The problem is, how do you define what the profit when you have four different contractors working. Do you divide up the goodies four ways, or porportional to time invested?

You should almost form a JV LLC to manage this individual job
 

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Nit, man you said alot, slow down, first off dont be surprised if your 400,000 dollar projection turns into 150,000. Secondly four guys equally involved spells trouble. Planning the details of the partnership on the fly is risky at best. If its not to late, talk to a lawyer, otherwise do your job, keep your eyes and ears wide open, and hope for the best. GMOD
yeah seriously 4 guys sounds crazy and i'd watch my a$$. everyone i know who's partnered always ends up in a huge fight or argument especially when there's lots of money involved.
 

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Discussion Starter · #6 ·
I know, I had a partner that I had for 8 years that I just got rid of. I am going to draw something up tomorrow and basically say that after all verifiable expenses, The profit will be equally divided btw us 4. (BTW) 2 of the guys are father and son. I just was looking for some help wording so it does not freak anyone out. Even the gc's are reminding them that it was my getting them there.
 

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How would you feel about a 5% landing fee, finders fee, whatever you want to call. If it is common knowledge that all parties are there because of you, you are entitled and it might make up for some of the **** that is bound to go down on this job, GMOD
 

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Discussion Starter · #9 ·
yes,only 1 GC. Sorry. Finders fee would be fine. "pigs get fat, Hogs get slaughtered" I just would love to have money in my pocket again. I forgot what it feels like.
 

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yes,only 1 GC. Sorry. Finders fee would be fine. "pigs get fat, Hogs get slaughtered" I just would love to have money in my pocket again. I forgot what it feels like.

Listen up, lets assume it gets messy, and it will, if you can get them to agree to a % fee off the top, even if things get messy and confusing your % deal will gaurantee MONEY IN YOUR POCKET, You must tie your commision to progress payments, dont let it go till the end. GMOD
 

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How was it bid, lump sum, cost plus, T&M?

How is everybody getting paid for the work? draws, at the end, hourly? stages?

How are costs calculated? Everybody coming up with their own? Same for everybody? How are expenses calculated?

Who determines the quality of the work and completion? You? Everybody figures it themselves?

Answer or thinking about these things is just the start to thinking about what you need in your contract. Nobody here can figure out your contract without knowing all this just to start and a whole lot more.

Next time I would recommend you avoid equal partnerships, make sure 1 person is in charge, have everybody else sub to him or if you don't want to do that let everybody else work directly with the gc on their own.
 

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All criticisms of partnerships aside. I think generally the person who makes the sale/bid and wins it has the strongest bargaining position and shouldn't let go of it.

I have two questions.

Who gets paid and who writes checks and distributes money/pays bills?

Whoever handles the checkbook decides what the profits are. The holder of the purse strings could decide that the project is going to lose money and then there won't be any profits to split.
 

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I hate to say it, but I think I know the answers here



How is everybody getting paid for the work? draws, at the end, hourly? stages?

uhhh.....

How are costs calculated? Everybody coming up with their own? Same for everybody? How are expenses calculated?

ahhh....

Who determines the quality of the work and completion? You? Everybody figures it themselves?

ehhh.....
 
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