Appropriate fee to manage a build for someone else?

[Driver500]

This is a new situation for me and I'd appreciate feedback from you guys.

I've been approached to manage a race car build. The car will receive a built motor, substantial chassis mods, quite a few parts installed, tuned and delivered ready to go. I will be responsible for finding suitable sub contractors "engine builder, tuner..etc", coordinating the work between 3-4 shops, and pretty much managing the build and delivering a finished car. The owner is taking a hands off approach and just wants it done.

I will not be doing any of the work on my own so my role is purely deciding who to use and making sure it's built right. I'm connected with the right people to get this done and have no problems with the task. I just don't know what I should charge for my time.

I'm thinking 10% would be a good place to start, but didn't really have an idea. What do you guys think?

 

[MIAdragon]

This is a new situation for me and I'd appreciate feedback from you guys.

I've been approached to manage a race car build. The car will receive a built motor, substantial chassis mods, quite a few parts installed, tuned and delivered ready to go. I will be responsible for finding suitable sub contractors "engine builder, tuner..etc", coordinating the work between 3-4 shops, and pretty much managing the build and delivering a finished car. The owner is taking a hands off approach and just wants it done.

I will not be doing any of the work on my own so my role is purely deciding who to use and making sure it's built right. I'm connected with the right people to get this done and have no problems with the task. I just don't know what I should charge for my time.

I'm thinking 10% would be a good place to start, but didn't really have an idea. What do you guys think?

10% of what? The total build? So you would want 10K on a 100K build? That sounds a little steep IMO.

 

[Driver500]

10% of what? The total build? So you would want 10K on a 100K build? That sounds a little steep IMO.

What do you think would be a more appropriate $ amount? This build will be closer to 30k than 100k.

The shops I've seen send out work to be done usually charge a 30% fee back to the customer. I thought 10% was reasonable for bringing it all together.

 

[thomas91169]

Rape them.

If they cant turn wrenches themselves, let alone manage what shop does what, then more power to you and they deserve to be bent over due to their lazyness.

Too many people these days racing with their pocketbooks and know nothing about any facet of their vehicle.

 

[soccerman002]

Unless you want to try and figure a flat fee, I'd establish a rate/hour and keep track of how many man hours you dedicate to the build - time on the phone, travel time to and from the shop(s), time at the shop, handling paperwork, etc. Send him an itemized time sheet every two weeks.

Is this for a friend, a friend of a friend, stranger, etc.? You might want to establish your responsibilities and working relationship in writing, for your own protection.

 

[Driver500]

Rape them.

If they cant turn wrenches themselves, let alone manage what shop does what, then more power to you and they deserve to be bent over due to their lazyness.

Too many people these days racing with their pocketbooks and know nothing about any facet of their vehicle.

Not quite the scenario here. This guy is out of the country most of the time and in the past he's been pretty well raked over the coals by the the shops he's tried dealing with simply because they see him coming, know he's paid, and won't be in town in a few months to cause trouble.

 

[Driver500]

Unless you want to try and figure a flat fee, I'd establish a rate/hour and keep track of how many man hours you dedicate to the build - time on the phone, travel time to and from the shop(s), time at the shop, handling paperwork, etc. Send him an itemized time sheet every two weeks.

Is this for a friend, a friend of a friend, stranger, etc.? You might want to establish your responsibilities and working relationship in writing, for your own protection.

Good Advice. Oddly enough this is for the guy I sold my car to. We hit it off pretty well and he was telling me about the troubles he's had with his other cars. I mentioned I'm pretty well plugged in and positioned to get his cars ready for him when he comes back and this is where we are.

 

[truebluedevil02]

Been there dont that. OP, flat rate or a %, you cant really do hourly rate since as anyone who has built a car knows, SHIT HAPPENS, you may have to run your ass off but there is no real way to prove your actual time invested. He could call BS on your fee and you would have to prove it in court(if it went that far). I would do a percentage of 10-15%, and GET IT IN WRITING. I would say also get 50% of the estimated fee up front. IF you think it will be a $30K build, get $1500 up front and the rest when the build is finished. Also establish that if the car has to go back for extra tweeking/fine tuning/changes, that there is an aditional 10-15% fee as well.

 

[91GT]

What is the deliverables? Is the owner selecting the parts and combo and you just have to answer questions and monitor progress? Do you need to select parts and ensure that it meets performance criteria (minimum power, et times, etc)? Are you required to keep the build to a preset budget or schedule?

You need to determine your level of risk and role within the project before you can give a price.

 

[JBird_Cobra]

I dunno... for what its worth the contractor fee we charge where I work ranges from 5%-10% on smaller jobs.

 

[SCBQQSTN]

+1 on 5-10%

 

[WHITESVTCOBRA]

depending on the build....I'd say 1500 is fair, sounds like most of the stuff is done by others and you will be the quality control person, no real "work" on your part.

 

[CobraBob]

I lean towards 10% since the owner is relying heavily on you to pull the project together. IMO the complexity/depth of the project should affect the fee. If it is a basic project and all you're doing is buying the parts and having them installed, then maybe 5%. If you're making (informed) decisions as to those parts and where/how they're installed, and you're darn good at it, 10%.

 

[Woody6799]

Im in for 10%. The headaches of coordinating from shop to shop is going to be a pain. Plus at a percent the more he spends the more you make, it is a business after all. If you pick a flat 1500 and he goes through the roof on extras and it takes a month longer, now you have to have that "I need more money conversation." Stick to the percentage on the final cost, besides, you know you will have tons of undocumented time into phone calls, thought processes, shipping adventures, and problem solving.

 

[soccerman002]

Reason why I suggested the hourly route is b/c our company V.P. is having a restoration done on a 70-something Land Cruiser and the shop owner bills his time dedicated to the project by the hour. If he's on the phone, picking up parts from the chrome guy, windows from the glass guy, headers from the ceramic coater, etc., he sends a bill for his time. In the end it may end up being somewhere in the 5-10% range that others have suggested, who knows. I've seen other shops take that phone/driving time & consider that part of their overhead, just depends on the shop.

That's just an example of how I've seen these sorts of things handled, especially if the owner of the vehicle is taking a hands-off approach.

I do tend to agree more now with just agreeing to a percentage of the build cost, seems like that would be a simpler option.

 

[Driver500]

I had the talk with him this morning. He was very happy with 10%. Looks like a new venture for me. Thanks for the help guys. I'll put together a thread for the car once it's in motion.

 

[D's01Snake]

I'd do it for free, seems like something fun. Spending other peoples money and all. But at the end of the day, time is money. Id be onboard with the 10%