Standard Practice in the trade?

[Madimel]

A builder informed me my old company wanted 6% of their fees in return for referrals of new projects. The fee would amount to around $240k! I was shocked to hear that practice still exists, especially in Arizona. I brought this subject to other builders and all of them told me it is very common especially for architects and real estate agents to request a finder's fee from builders. Have anyone else have this experience?

[stairs]

A builder informed me my old company wanted 6% of their fees in return for referrals of new projects.
Who referrred whom?
I guess nothing is free in life.
The reality is everyoe whats something for a favors , you miegt be able to negotiate the %6 .
From the legal point maybe since there is quite a sum involved you might talk to a layer and see if this is ok. This is not very competitive , maybe client can sue someone.
Good luck.
http://www.davincifloors.com/portfolio.htm

[csintexas]

I am not sure that I understand the situation.

The architect and or realtor wants a finders fee for refering clients to the builder?

I suppose that is not uncommon for realtors. For a realtor that would be about a standard sells commision although the fee here is normally 4% in that situation. For such a large project the fee could be less.

Check Arizona licensing laws -sometimes kick backs are considered unethical.