Replies

1. 
   jonblakemore | Apr 04, 2009 12:38am | #1

   I would try to determine how many hours you will spend per week (or for the duration of the project) and the multiply that number by your hourly rate.

   If you had a large company where you could hire dozens of project managers and were interested in aggressive growth, I think a different business model would be in order.

   You, on the other hand, have a finite amount of hours per week/year and need to be concerned with first covering your costs and then secondly with making a profit. Basing your fee on the total job volume seems to be a risky venture to me, much like basing your bids on the square foot.

    

   Jon Blakemore

   RappahannockINC.com Fredericksburg, VA

2. 
   EricPaulson | Apr 04, 2009 01:12am | #2

   I'm with John.

   Or inquire how much time the client would like you to devote.

   Or tell them you will wing it as the need arises and bill accordingly.

   See what looks like it will work best.

    

1. 
   jonblakemore | Apr 04, 2009 01:44am | #3

   Thanks for the agreement, Erik. 

   Jon Blakemore RappahannockINC.com Fredericksburg, VA

2. 
   Snort | Apr 04, 2009 01:53am | #4

   I hope to start a similar job soon. GC and I worked up the bid together. For the profit and overhead line, he figured what he needed, I figured what I needed for the 10 month projected project. Figured 30 hrs a week PM time at an hourly rate for my end.The books will be open, and any money we don't spend, we will split 50/50. Gives us both some incentive to keep things moving, and try to get better prices. I hope<G>http://www.tvwsolar.com

   I went down to the lobby

   To make a small call out.

   A pretty dancing girl was there,

   And she began to shout,

   "Go on back to see the gypsy.

   He can move you from the rear,

   Drive you from your fear,

   Bring you through the mirror.

   He did it in Las Vegas,

   And he can do it here."

1. 
   EricPaulson | Apr 04, 2009 01:59am | #5

   So you will PM a project for the GC?

   He designed and sold it and now you will pretty much run it? You will be the point of contact for the client?

   Why did the GC choose to not run the job himself?

   Just curious.

   Thanks 

1. 
   Snort | Apr 04, 2009 02:19am | #6

   He's also a designer and a developer. Clients had intended for me to build the house, but kept adding until it was beyond my license. If the contact gets signed, he sells the lot and plans, plus keeps something going in his development. I get to work<G>http://www.tvwsolar.com

   I went down to the lobby

   To make a small call out.

   A pretty dancing girl was there,

   And she began to shout,

   "Go on back to see the gypsy.

   He can move you from the rear,

   Drive you from your fear,

   Bring you through the mirror.

   He did it in Las Vegas,

   And he can do it here."

1. 
   EricPaulson | Apr 04, 2009 02:44am | #8

   Deal 

2. 
   Snort | Apr 04, 2009 03:02am | #9

   Not quite yet<G>http://www.tvwsolar.com

   I went down to the lobby

   To make a small call out.

   A pretty dancing girl was there,

   And she began to shout,

   "Go on back to see the gypsy.

   He can move you from the rear,

   Drive you from your fear,

   Bring you through the mirror.

   He did it in Las Vegas,

   And he can do it here."

3. 
   Ted W. | Apr 04, 2009 02:22am | #7

   I had a similar situation, was hired by the hour as consultant/watchdog. It worked out pretty well, as the GC was pretty straight forward and not looking to take shortcuts. Even listened to a few of my suggestions. I put in about 10 hours a week on that one, so not much of a comparison, but the same principal. I was on call and charged my regular hourly rate.

   ~ Ted W ~

   Cheap Tools! - MyToolbox.net
   See my work - TedsCarpentry.com

4. 
   [email protected] | Apr 04, 2009 04:00am | #10

   See thread 118512.1

   It will give you some insight into some of the pit falls.

1. 
   MSA1 | Apr 04, 2009 05:11am | #11

   Thanks everyone, looks like hourly rate is going to be the best way to go. 

   Family.....They're always there when they need you.

5. 
   Lapun | Apr 04, 2009 02:23pm | #12

   It is normal practice here to charge a fee of 2-3% of project value, plus disbursements. The fee figure generally depends upon the amount of documentation associated with the contract.

   I see others recommend an hourly rate. That is fine. However, the percentage figure will be a good reference when you are looking at the final figure. Unless your bid matches the lower percentage figure, you run the risk of getting burned.

   Lapun.

1. 
   jonblakemore | Apr 04, 2009 08:20pm | #13

   "It is normal practice here to charge a fee of 2-3% of project value, plus disbursements. The fee figure generally depends upon the amount of documentation associated with the contract."

   I don't think you can make that kind of statement in a vacuum. Sure, 2-3% may be just fine on a $2m commercial project, but would you manage a $75k addition for 2-3% ($1,500-$2,250)?

   "I see others recommend an hourly rate. That is fine. However, the percentage figure will be a good reference when you are looking at the final figure. Unless your bid matches the lower percentage figure, you run the risk of getting burned."

   By "getting burned", are you saying the client will not give you the job or you will not get paid what you are due at the end of the job? 

   Jon Blakemore RappahannockINC.com Fredericksburg, VA

1. 
   Lapun | Apr 04, 2009 11:01pm | #14

   Point 1 taken!Point 2 - 'burned' as in seriously over committed!Lapun.