I am a small residential/light commercial builder and remodeler in a town of about 20,000 pop. I have been asked to be the project manager for a large scale renovation of the church where I attend. Estimated costs of renovation to be between $1.0 and $1.5 million, primarily interior renovations and repairs. I have performed work through my company for the church on sevarl occasions. Most recently, my company (me) completed a $80k kitchen renovation. Have also done bathroom renovations and various repairs.
Here’s where I need help. How much to charge for managing the project without being the GC. Hourly? Percentage? Combination of the two?
I am a member at this church and my company has a good reputation among the membership. I have built and remodeled homes for many of my fellow church members.
In arriving at a price for serving as a project manager, I want to be fair to my church but also fair to myself and my family.
Thanks in advance for your help.
Chris Calhoun
Blackstone Builders
Replies
Will it be a full-time job? I mean that you won't have time to do any other work. If so, price it high enough to pay all your expenses. If it will require a couple of hours a day, bill your standard hourly rate. You need to either set a fixed price amount, or bill hourly, but I can't see using a percentage of the construction cost.
"Put your creed in your deed." Emerson
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
I'm sure that this is a difficult decision, how much to charge your own place of worship. I've done a lot of volunteer work for spiritual reasons but it's always been during my free time.
I suppose if I were asked to manage a job like that, I'd take it on as I would for a friend, do it by the hour at a fair rate. That way it's all out in the open and more flexible. If they run short of funds or if they later find someone who will do it for less, they have the option to conclude our simple arrangement.
Thanks for the responses. Both have got me to thinking. At this point, I don't know if it will be a full time job or not. I think it will be full time some days and nothing on other days. I also have employees, so I can't give up my ongoing business to make this a full time job.
Chris
Many project and site managers do have profit sharing built into their agreement, usually a percent of gmp or bid profit. Most are salary positions so you need to be aware of extra hours needed to manage a job. I'm currently a project engineer and you at some time or another get the feeling you sold your skills too cheap.
Churches with their volunteer labor pool can really be a challenge.
At this point, I don't know if it will be a full time job or not. I think it will be full time some days and nothing on other days.
That can be a pain, if you don't set up a regular schedule for both. If your employees are used to getting their instructions at the beginning of the day, I'd keep that routine and make the other job fit around it.
Of course there are always exceptions but generally speaking, I'd take care of my employees first. Let the subs on the other job know what routine you're planning to follow. That way they won't try to make you fit their other plans. Well...they might try but they'll know ahead of time that you're not likely to change anything for them.