Does anyone have guidance of putting together Owner's Representative agreements?
Background. I've identified a candidate I'd like to on a part-time to basis to manage construction renovations as I am an out of state investor. Their responsibility is to:
Source, negotiate GCs/subcontractors and hold accountable to budget, schedule / oversee draw requests
Perform initial inspection, generate scope of work, cost esimates
Verify punchlist and project close-out
I'm trying to sort out the right compensation model.
I want the individual incentivized to:
Complete as many renovations as possible, on time and on budget and select reliabke contractors:
Have an incentive to lower costs over-time, and potentially in-sourcing GC activity
Ensure quality control standards are met
I was thinking of a "per per activity / value-added model" (E.g., pay per inspection, pay per SOW, pay per completed deal, etc.) although it might be complicated and it's hard to model out all the incentives.
Or there is a flat fee model where there are expectations for performance.
What's the best way to go about this?
Sounds like a flat fee with payments and possibly incentives (bonuses) per milestones would be a good fit for you. Whether or not that is a good fit for your candidate is hard to say.
Quality control is a hard one to document, confirm and remunerate.