What is it you envision him doing? Will you be acting as the general contractor or will you have a separate GC?

We envision him giving us advice while we do all the work (coordination, scheduling, permits, on-site supervision, negotiations, inspections, purchasing, etc.). He will act as adviser and consultant. Perhaps he will give us access to his subcontractors, advice on design, answers to questions. He will consult on how best to remediate fire damage.

Ask him...that would vary a great deal in different areas of the country.

Zagy, I remember your post from a year+ ago about your round room...

You might consider, it would be worth having him GC it, if you'll be paying a fee anyway. That puts the liability for anything that doesn't go right, on him. He has greater pull with his subs (than you will for a one-off job) etc. Is there any reason to keep him from GCing it all? (cost? control?)

Kirkhall - It's cost, predominantly. If we have money left over, it enables us to invest elsewhere, instead of tying it all up in our house.

We are engaging a GC on a consultant basis to help with some onsite reviews/guidance. Paying about $70/hr and plan to use him about 40 hours or so

It would be the rare non busy GC who would even consider such an arrangement. The good ones are busy right now. And the ones who aren't busy......well, they are either so by choice, as in forced early retirement because of the downturn, or they aren't busy because they aren't very competent. Business is picking up in new construction, and many of those who early retired are coming out of it to take on projects now.

The bonus for the contractor is, it lets him off the hook for everything. He's responsible for nothing, except "advice", which has no legal binding repercussions for him at all if a sub does something incorrectly. And he's not going to be able to be held to being responsible for missing something that's done wrong either. All he's there to do is to talk you through it and third hand any sub supervision. He can't legally tell any sub what to do unless he is a hired agent of yours with the responsibility to do so. That comes at a higher cost. THAT is what a GC does. The buck stops with GC, which is YOU. And that's why they are worth the extra %. They can supervise, hire, and fire, and are legally responsible when things go pear shaped. In your envisioned arrangement, you are still on the hook for all of that. And with the subs knowing that you don't speak from a position of strength in either knowledge or power to give them future business, it will be rough going.

The contractor would need a carefully written contract that makes it clear he is not responsible for the performance of the work just the written advice he gives you. And he would not be listed as a contractor on the building permit.

The points GreenDesign makes are spot on. The guy we are using as a consultant built our current house and I know him well. Are they busy - yep, really picking up but spreadnig 40 or so hours over the course of a build is doable for him. I wouldn't trust using just any GC I found out of the phone book. Do your homework and good luck

This is not a role must contractors would accept because if a 3rd party is injured and there is no General Contractor involved, you and your contractor-consultant will be sued and the contractor-consultant's insurance might not protect him.

We would be using a contractor who already did our construction estimate, fought on our behalf in mediation, stood up for us with our insurance company, and brings us bottles of great wine at Xmas. He has become a friend. The situation surrounding this fire at our house more that two years ago is so unique that it is unforgettable for anyone that gets involved. He knows we will take good care of him when our settlement comes. In the meantime, everything he's done for us so far has been on a handshake and good faith. He's an amazing contractor and expanding his business everyday. He's also a very good person. We are hoping he would agree to an arrangement where we would be able to benefit from his vast knowledge, he would get nicely compensated, and we can all stay happily involved throughout the project (and beyond) without him having to make the commitment of being GC and also thereby enabling us to save a bit of money to help compensate for some of our other losses that the settlement won't cover.

Sounds like you have made your decision. And whatever he charges is irrelevant.

Issues about accountability and liability also seem unimportant.

On the other hand, a Good Samaraitan is a very rare find.

Good luck with your project.