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The question

Is it permissible for my father to receive a 10% commission as a fee and profit from the total cost of demolishing and rebuilding a house, or is that considered usury (riba)?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

Contracting is divided into two types: an (lease/hire) for work only, where the materials are provided by the other party, or an istisna' (manufacturing contract), where both materials and work are provided by the contractor. The scenario described in the question does not fall into either of these categories. It involves an unknown wage due to the compensation being a percentage of the costs, making it prohibited due to jahalah (uncertainty) and (excessive uncertainty/risk). Furthermore, if the mentioned percentage includes compensation for a loan and for work, it is precisely riba (usury/interest). The solution is either to agree upon a known wage with the musta'jir (hirer) bearing the costs, or to agree upon a lump sum paid at the contract session under the conditions of salam (pre-payment sale).

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
58185
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy