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Author Topic: management fee credible or creditable?  (Read 607 times)

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Offline Frank_Pender

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management fee credible or creditable?
« on: October 12, 2002, 09:38:26 pm »
I walked over 300 plus acres of heavely man plant Douglas Fir timber ground today, from 10:00 a.m. to 3:00 p.m..  (right through my afternoon nap time of 1 to 2 p.m.  :'()  I have been asked to take over the management of this land that has been place in a trust by the father for the 4 children.   I will be establishing a management plan with the definite imput of the 4 trustees.  In fact, I said that is the only way I will take the Obligation.  The first thinnning will not take place until some some late next Spring.   The first thing is the establishment of the Plan.  
Tillway, you might well be one of the most knowledgeable about the Willamette Valley area for such a question, but I would like to hear what others have to say in differing parts of the country.  The basic lay of the land is somewhat of a "hogback" topography with very few locations in excess of 35% in any one locaton .  All skidroads are layed out and in very good condition.  There is one, well rocked,  road through the entire property.                                                  
I would be in charge of all marketing, logger hiring, vegitation control and any agreed upon road improvement or maintainance.   All costs will be payed for by the removal of any and all marketable fiber.  HELP!  What are the given methods of determining fee for such that  I have described. :P
Frank Pender

Offline Ron Scott

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Re: management fee credible or creditable?
« Reply #1 on: October 13, 2002, 09:20:52 am »
Rate methods may be: by the hour plus mileage and material costs, by cost per acre, or by commission based on value sold, or by the specific project.

Management plans are usually done at a cost/acre here.
~Ron

Offline Texas Ranger

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Re: management fee credible or creditable?
« Reply #2 on: October 13, 2002, 12:39:53 pm »
What Ron said, same in Texas.  We run sales on commission, and management plans by the acre.  The more intense the effort on the plan, the higher the cost.  Day inspections done by the hour, that is, looking at the land after the plan is in place.  Most road work here done by pros, so the forester charges hourly for the time to plan,implement and inspect.
The Ranger, home of Texas Forestry

Offline Frank_Pender

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Re: management fee credible or creditable?
« Reply #3 on: October 13, 2002, 02:47:45 pm »
I sure appreciate the breakdown of the issues you fellas have shared.  The outline becomes a bit more definitive.   I realize tht we all live in differing parts of this wonderful country.  So, how does one determine one worth per hour and be on the square with people.  I know what I get for me and my equipment for sawing, $55.00.  then to separate the man from the equipment become another task.   Out here in Oregon and Washington we have had the highest unemployment rates in the country for months.  Oregon has begun a slight decline in unemployment over the last few weeks.  Does one use that as a gage in determining ones worth.   Good times vs Bad?  DanG, it is challenging to determine value to some things, especially oneself, time and equipment.   Most of the time I just give it all away, jsut to get it out of my way and on to other things to give away.  :'(  ???
Frank Pender

Offline Tillaway

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Re: management fee credible or creditable?
« Reply #4 on: October 13, 2002, 05:52:33 pm »
Frank,
A company I used to work for manages 12,000 acres near you.  Every year they charge by the acre, this includes all sale layout and general management of the property.  The timber cut usually pays for all your management activities and gives the trust an acceptable profit.

If you need help feel free to contact me, I have lots of contacts in your area that can tackle specific problems you might have.
Making Tillamook Bay safe for bait; one salmon at a time.

 


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