How to pay your contractor fairly ?

[Katie Shepard]

I'm struggling with how to fairly pay my contractor without being taken advantage of.  How is everyone structuring payments? Do you pay a flat rate, daily? Do you pay a salary? Bid each job? I'd like to bid each job but so many little things come up I don't know how to quantify each item but know they take time. I've got a good contractor right now and I don't want to lose him but I also need to make money. Any advice on how you price/pay. 

[Matthew Paul]

Flat rate and I will use my skill and experience to get the job done as fast as possible , Daily rate and I will take my time , the more days , the more I make . Pay a salary and I am no longer a contractor , but your employee , you now need to get workmans comp , insurance and with hold taxes . 

If this is a professional licensed contractor he will give you a bid price and scope of work , anything thing that comes up outside the scope of work is an extra charge .

You make your money when you buy a property , not by hiring a cheap contractor