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Finder's fee

mtdew

I work at a small 10 person firm. An owner's representative that I had worked with at my previous job contacted me with a potential new project. We had good rapport and kept in touch professionally. The scope is a building renovation with a penthouse addition. Of course my current bosses (partners) were interested. We reviewed the scope and sent out the proposal today. I estimate that the construction budget will be around $15-20 million. So it's a nice size job. 

If we do get the job. I know deserve some type of compensation. And more of a final say in design.  Should I ask for a cut of the total income from this project? Maybe 20%? Or a salary raise would be the safer route as it's hard to tell how a new project will go?

I wanted to know how others were compensated for bringing work into the company. 

FYI: Even though I'd love to start my own firm;  this would not be the right opportunity. This developer would not want to hire a one or two person firm to take on his project. 

 
Apr 4, 17 2:24 pm
s=r*(theta)

Imho, get the job first, 2nd, I would play it by ear, I wouldn't beat my chest and stand on my desk yelling it from the rooftops & I would give the uppers the opportunity to approach me first. If 3-4 months go by and nothing, then I would then bring it up at the right time by saying something like "oh bob, i thought we offered incentives for work brought in and should I expect that on the 15mil job I was instrumental in landing? All things being equal, trust me people see and know who's doing what even if they act like they dont

Apr 4, 17 2:41 pm  · 
 · 
chigurh

what if the client turns out to be a total headache - should you pay the firm for dealing with your crappy client?

Apr 4, 17 4:27 pm  · 
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mtdew

So you'd rather play safe and pass on bringing in a job? No risk no rewards. I brought the parties together. First we'll see if we get the job. Then it will ultimately be the boss's decision on whether we take it. 

Apr 4, 17 5:14 pm  · 
 · 
senjohnblutarsky

Until the project makes money, I wouldn't ask for much.  I'd make sure, in a low level way, everyone in charge knows who brought in.  After that, they should take care of you.  If not, then you know you're not in all that great of a place anyway. 

Apr 4, 17 4:28 pm  · 
 · 
quizzical

mtdew: while you don't say much about how long you've been with this firm or your level of experience, my best advice would be to lobby for a significant role on the project -- hopefully one where you have a significant role in both design and project management. 

Then, when the project is both a financial success and a design award winner, you will have something really significant to discuss with the owners of the firm. Until those things happen it's not entirely clear that you did much more than make an introduction -- which has value, but nothing close to "20% of the total income". (Note: "income" and "profit" are not the same thing.")

Remember -- you admit that you could not have won this project on your own. The firm's senior people and the firm's reputation gave the client confidence that the FIRM could perform successfully. 

Achieving success in architecture is a marathon endeavor, not a sprint.  I applaud your role in bringing work to the firm, but have some patience. Know that if you are consistently successful -- both in bringing in and producing work -- over time your contribution will be recognized and rewarded.

If you hit your employers up too hard and too fast for compensation with respect to this project -- especially when the project is not yet a success -- then they're  probably going to see you in a light that may not be altogether flattering and confidence building.

Good luck.

Apr 4, 17 5:13 pm  · 
 · 
Bloopox

If you wanted to negotiate a cut of the fee, you should have had that conversation with your employers before the proposal was completed and sent.  The problem is that now, if the firm does get the job, it's very easy for them to say "sorry, we should have discussed that earlier.  We didn't expect you to ask, so we didn't build that into the fee."  Particularly since you're thinking about some large numbers (Did you mean 20% of the fee? Or 20% of profit?  Either way, that's... ambitious.)  Negotiating an expanded role for yourself on this project should be easier to do, as there seems to be some expectation on the client's part that they'd be dealing with you.

Apr 6, 17 9:38 pm  · 
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mtdew

It would be foolish to demand a cut of the profit. I've worked on too many jobs that dragged on...where there was nothing left after the bills, salaries were paid .

Apr 7, 17 9:14 am  · 
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Fivescore

Yeah, the time to discuss a finder's fee would have been before you put out the proposal.  You can't expect to ask for a chunk of the fee unless that was figured into the fee.  I would think they'd be amenable to making you the face of the project - though how much final decision making power you have probably still depends on your general role in the firm.  It's still their reputation and their liability on the line, so giving you carte blanche isn't likely, regardless of how they got the project.  If you wanted that then you'd have to take on the project on your own, or perhaps as a partnership between your own firm and theirs.

Apr 7, 17 9:37 am  · 
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