Question:
Here’s the updated version in a numbered format:
1. I am a representative of the owner for a construction project.
2. The owner requested that I find a contractor for the project.
3. On my own initiative, I decided to obtain multiple bids.
4. One of the contractors offered to pay me 15% of the contract value if I awarded him the job.
5. I awarded the contract to this contractor, who agreed to pay me 15%. He also happened to be the lowest bidder.
6. So far, the contractor has billed the client about $250,000, and I have received approximately $36,000 in commission from the contractor.
7. The owner is happy with the contractor’s work, and the project is about a month away from completion.
8. The contractor is paying me out of the money they receive from the owner, but the owner is unaware that I am receiving money from the contractor.
9. In addition to the commission from the contractor, I also receive an owner-rep fee from the owner of $2,000 per month, and over the course of the year, I have received about $24,000.
10. I would like to know if accepting this commission from the contractor, without the owner’s knowledge, was against Torah law.
11. If it was unethical or against Torah law, what steps should I take now to rectify the situation?
Let me know if any further changes are needed!
Answer:
Hello,
What you did would be ethical if a few conditions were met. First of all if the contractor that took the job did not raise his price due to his giving you a commission. If he did, then it isn’t ethical, because you are being paid by the owner to do the best job you can, and not to cause him to pay more money so it can be given to you by the contractor.
Secondly, although the contractor that you chose was the cheapest, but is the quality of his work the same as the other contractors? Or is the owner getting inferior quality work for a cheaper price, and you chose that contractor because he is giving you a commission?
Therefore, if the contractor that you chose was as good as the other more expensive ones, and he didn’t raise his price due to your commission, then what you did is acceptable, and you don’t have to make any changes.
Best wishes
