Marking up materials on a project with a partner?

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AAHALL83

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Houston
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Electrician
He is the master. i have the generator knowledge. I Got the job. I Bid the job. I Did a takeoff on the job and purchased the materials, permit, scheduled the plumber, did most of the install and also went back to finalize the job after inspection and do startup and get paid. Question is would you split the profits down the middle?

Or markup the materials for your extra trips and all your extra time and split the job 60% me 40% him profit? Pay him a day or hourly rate and pay extra for his license to pull thhe permit?

How do i make this fair? He is getting jobs also that he is bidding and i will be helping him with so i feel the person who gets the jobs and puts it all together should get more in the end.

Thanks guys
 
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d0nut said:
I know it is too late for your project and therefore not very helpful, but the way you make this fair is by figuring it out before you start the job. Whatever you do now will make someone feel like they are getting the short end of the stick.
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We havent really agreed on anything yet but again i just want it to be fair. Also i am mentoring him in the generator industry since he is just getting into it. Not just installs but service/maintenace and sales.
 
LarryFine said:
How much do each of you need the other? Who could do the job without the other one?
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I really just needed his license for the permit and ive been coaching him on the generartor stuff since he is really fresh with it. And i enjoy helping him and giving advice. Hes a good friend of mine. We used to work in the IBEW together years and years ago.
 
I agree with Dennis that a flat amount per job would be fair, and much easier; no calculations.

Just curious: Why can't you get licensed?
 
Dennis Alwon said:
I believe what you are doing is not legal, at least in most states it isn't unless he is on the payroll.

If he is a friend talk to him about what he thinks is fair. He may just want a set fee.
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He was on the job with me. How is this illegal? In texas a master can work under 2 companies as well.
 
LarryFine said:
I agree with Dennis that a flat amount per job would be fair, and much easier; no calculations.

Just curious: Why can't you get licensed?
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Let my j card expire while i was in the union. I assume i could and its something i can look into for sure.
 
It almost sounds like you're his employee.

If he's effectively your helper, maybe pay him hourly in addition to a flat fee.
 
LarryFine said:
It almost sounds like you're his employee.

If he's effectively your helper, maybe pay him hourly in addition to a flat fee.
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i was thinking a generous hourly rate and just let me do all the planning and scheduling. Also agin he is getting his own jobs that he will need my help on still. Not permitted as well so i just want things fair.
 
Generally whoever is taking the most risk would be the one to get the most share of profits if they exist. Risk = compensation.
 
I don't think anyone here can say what is best, it is up to you two to come up with a mutually agreed arrangement. Something else to consider: If you are going to share profits, then you also should share losses - in my opinion.
 
I with the felon on this one..
That’s something you two have to come up with..
If you going to be partners it’s better to settle this now before tensions rise beyond repair.

The last thing your partner wants to hear is “the guys on mike holt forum said you should get 40%...”
 
There are a couple of guys I team up with on occasion. Our (unwritten) rule is who ever gets the job, and buys the material, gets the mark-up. All labor and other possible profit gets split evenly. Unless, for some reason one only needs help with part of the job, then we just pay/receive an hourly wage for the time spent.
 
I've had a few joint efforts along the way. Usually it's been one guy has the license, one guy has the work, and materials are split.

But same haven't, and they've been split according to 3 criteria:
Whose job is it? He gets 1/3 of the profit
Whose license is it? He gets 1/3 of the profit
Who bought the materials? He gets 1/3

This was after agreeing to a set hourly rate for each of us, and clocking in for all time it takes doing walkthroughs, gathering materials, getting permits, swinging a hammer, etc.
 
I've watched electricians not talk after years of knowing each other because they didn't agree on payment before hand. Its always better to be upfront. Sounds like you're annoyed he didn't help out that much when you "agreed" on 50-50. IMHO, put on your big boy pants and get your license...no offense..
 
HuntNJ said:
I've watched electricians not talk after years of knowing each other because they didn't agree on payment before hand. Its always better to be upfront. Sounds like you're annoyed he didn't help out that much when you "agreed" on 50-50. IMHO, put on your big boy pants and get your license...no offense..
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Not annoyed at all. We agreed 60/40. Whoever gets the job and whoever puts it together gets the 60.
 
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