Contractor Trying to Charge on Millwork
Started by dan@digsrealtynyc.com
about 13 years ago
Posts: 114
Member since: May 2012
Discussion about
We are doing an extensive renovation which will include significant custom millwork. Our contractor's bid excluded millwork because we wanted to bid that out separately, and our millworker's bid includes fabrication, delivery and installation. Our contractor is now telling us that he wants a percentage of our total millwork contract for supervising and coordinating. I don't see how one is related... [more]
We are doing an extensive renovation which will include significant custom millwork. Our contractor's bid excluded millwork because we wanted to bid that out separately, and our millworker's bid includes fabrication, delivery and installation. Our contractor is now telling us that he wants a percentage of our total millwork contract for supervising and coordinating. I don't see how one is related to the other. He is not supervising fabrication, so why should he collect a percentage on that? Since he will be supervising and coordinating delivery and installation, I would have no problem paying his percentage on that, but I just don't understand why he thinks he should be entitled to a percentage of the rest of the contract. Just trying to figure out what is typically done in this situation. Thanks. [less]
Hi zarf,
First two questions:
1- Why did you exclude the millwork? (just curious)
2- Who is going to directly pay the for the millwork?
If the GC pays for it, they take full responsibility for it. Their insurance is linked to the total amount of money going through the business.
In our case, if we don't hire the sub, we don't markup the sub's work. However, the customer is then working as the GC and someone has to schedule the work correctly so it doesn't affect work flow. You also leave yourself open for unforeseen problems. The GC can blame the sub for any issues with the millwork (ie: quality and workmanship) of the fabrication and again cannot take responsibility for any of the sub's work.
This is a classic example of why GC's prefer using their own subs. It makes the entire process easier for everyone.
Hope it works out for you.
hamptonsrmr.com
Did you already start with the contractor? Is it in your agreeemnt?
I would negotiate a fixed fee with your GC. Since your millworker is handling delivery and installation, the GC's level of involvement is the same whether you're spending $2,000 or $200,000 on millwork.
as hard as it may seem, in the middle of a project, to replace a GC --- is this person even acting as a GC? Do you have a contract in writing? ... Do some research on finding a replacement and when you have some candidates, float the idea of replacing him to him... see what he says.
or tell him you dont need him supervising anything regarding millwork. make sure you have a rock solid "millwork contract" for which you make a significant final payment after the installed product is inspected by a separate "expert".
I see things like this as a red flag.
Zarf,
As a contractor, I think it is fair that the contractor is paid for overseeing another outside person that is hired by the client. I do not think it should be a % of what the other trade costs. I agree with Flarf it should be a set amount. The contractor is lucky its not a relative doing the work for free. They would end up with nothing.
What would be a fair fixed fee to oversee installation of kitchen cabinetry, 4 built-in radiator/ac covers, 3 additional built-in cabinets, 3 small built-in bookcases and some shelving?
when you originally negotiated this contract that specifically left out the millwork--what did the GC say? at what point in the overall process are you, ie. are you still negotiating contract and haven't begun any work?
We're a little over a month into the project now. We did not address the issue previously.
Where is this? NYC or up in Columbia County?
zarf,
do you need the GC to oversee the work? since you have a contract with the other company, let them take responsibility for any damage caused.
About 30-40% of my renovation was done by subs that I brought in. Before the start of the project the GC & I agreed to a flat fee of $2000 for letting the other subs in and out and just being around to answer questions. It's a bit late but you can still settle this with the GC. No way that should pay full fee for this.