Possible dilemma with professional designer/project manager on remodel

Irish Birdie
by Irish Birdie
We really like the company we hired to assist us in the design and project management of new small addition, master bath, and backyard upgrades. We agreed to pay him a % of the construction costs. Now we find out he is making commissions on the products he's recommending and specifying with the builders. This sounds unethical to me. Comments?
  3 answers
  • Moxie Moxie on Apr 24, 2014
    I personally think this sound a bit like a conflict of interest. In the end, if you like what you got and appreciated their service - if they made more money on working out deals with their favorite mfg/suppliers then are they just smart or is this crooked? A bit grey I agree. Times are tough and people are using every angle they can find from selling names to advertising on gas pumps. Unfortunately I think this is kinda the American way...grey. Unless you paid more for the products for them to attain the kickback, you were not really hurt. If you paid more for them to recommend to their own advantage, then I would take issue with it and ask for an accounting of what they received, deduct from percentage total you owe unless they want you to you tell others what they are doing. Ultimately; it will come down to what your contract indicates and if there was a non-collusion statement or not. Don't tell them who told you..that person is probably your only card if you need to take legal action. Just my opinion.
  • Irish Birdie Irish Birdie on Apr 24, 2014
    thanks. keeping an eye on things...and I agree with the grey. was worried about incentive to keep to budget, if earning % on job.
  • It's called a kickback....and the only problem that may arise would be recommendation of substandard or lesser quality materials used....I would DEFINITELY confront designer/mgr on this one.