Verify what costs the contractor considers "job costs," and what
costs are included in contractor’s "fee."
Project Manager Expense. Is the project manager’s salary a job
cost or is it included in the Contractor’s Fee?
Change orders. While you cannot predict change orders, a careful check
on references could indicate change order patterns. Agree on a percent
fee for change orders.
Wages. Will workmen’s wages be reported as actual cost or will
there be set hourly rates charged by the contractor?
Equipment Rental. How will equipment rental be charged? Verify the
rental rates and that you are being charged for actual use and not on-site
storage.
Payroll Taxes & Insurance Burden. What is the percent of labor
that will be charged?
Company Owned Small Tools Expense. What is the percent of labor that
will be charged?
Ask specifically and have the contractor outline his preferences for
a split of job cost savings.
When evaluating each fee proposal, make a chart showing an "apples
to apples" review of each specific charge.
