Qualifing a new shop

[ksg]

As a qualilfier for a new shop, what is the best way to be compensated? Percentage or flat rate.

 

[Pierre C Belarge]

I am a little confused.
You are a mechanical shop who subs out to ECs?

and you want to qualify an EC shop?

What does that mean?

 

[360Youth]

My guess is that you are the listed qualified for a new electrical shop? I prefer a flat rate because it is safer and known from week to week. Percentage may give you the greater compensation, though.

 

[nakulak]

I would prefer to negotiate a base rate + profit sharing/ownership

 

[ishium 80439]

I am just really confused as to what you are asking. Maybe there is some lingo that I am unfamiliar with. Could you please explain a bit more in depth what you are asking?

 

[wireguru]

sounds like he would be the qualifying employee, responsible managing owner, or responsible managing employee (depending on how his state does it) for a new firm to obtain their contractor license. Me, I wouldnt do it.

 

[ksg]

Mechanical Contractor

Mechanical Contractor

I have a state mechanical contractors license for the state of Floirda. I'm planning on qualifing a new corporation to do mechanical work and trying to get some insight on which way I should recieve compenstaion. Percentage of each job or flat rate per month.

 

[ishium 80439]

I get it now. I wish I had some insight for you but this is unchartered waters for me. The things that spring to mind immediately are how involved are you going to be in day to day operations, what type of work (service, construction, resi, comm, large small), how big is the shop, what type of backlog are they looking at, what kind of experience does the staff have, if you agree to flat rate and they don't make it how will they honor the agreement, how long is the contract,will there be provisions for renegotiations at some point in the future and so on.

I have no legal insight into this but for me it would really come down to what I thought this business was capable of. It would be a sure bet and less headache to take the flat rate. It could be a roller coaster ride and certainly more paperwork and negotiation to take a percentage. You would have to verify the work and would you get paid what they bill or what comes in the door. If they bill $10,000 to a customer and get stiffed do you get your cut of that regardless if they ever see the money?

 

[wireguru]

how well do you know the people you would be doing this with? How well funded are they? This is a very risky proposition that can leave you with liability both financial and for work done, long after the other guys are gone.