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Old 01-16-2024, 08:47 AM   #16
Locke
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Originally Posted by #-3 View Post
Yeah, I get the sense there is a big grey area when you get into rebates. But I think this guy is approaching it all wrong. I think it's pretty common to have a deal like, give me 10 jobs and and I'll give you 10% cash back... But I don't get the issuing a fake invoice thing why would you want the paper trail on something like that, and basically all he has told me is that he thinks he is underpaying me for my work.

I get the sense it's pretty damn common in a couple industries.
It is. I know what he's doing.

When you work Cost+ which is what large Contractors do and they have numerous trades sub-contract under them.

Usually the Head Contractor subs his trades out, and bills the customer for their materials and time at 'Cost+' and its usually like 15% or something like that.

But buddy knows that the client clearly has no idea what 'Cost' is, so if he inflates the 'cost' then he can inflate the '+' and pocket the difference.

I dont know if its illegal, per se, but its sure as hell unethical.

This is whats happening.

Buddy has:

1. A Cost+ Client
2. Who doesnt know what the Cost is.
3. Has exhibited lots of money.
4. He has decided he wants to take some of it. More of it than his work is entitled to.
5. Wants you to do his background work for him. I guarantee you that you're not the only one he's asked. If he's SMRT he's trying to inflate the cost of the entire project across all the trades.

Because the thing is, he can be asked to provide proof of the cost of Materials and getting Home Depot to change their invoices isnt gunna happen.

Asking the subs though? That can be done.

And yeah, I've seen this happen before. And people wonder why GCs have a poor reputation.
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