I'm an individual indie app dev and I like taking on small/medium business projects however recently a large housing development corp contacted me to get a quote on their project.
After reviewing their requirements, I'm sure I wouldn't be able to do this by myself but I know someone who works at a company that specializes in this type of work.
What would you do? Is it ok to ask for a referral fee? How much is acceptable? I'm thinking 5% but I have no idea since I've never run into this problem before.
Subcontracting has its own headaches and overhead. If your goal is to continue being a consultant then by all means, sub it out and run the project.
If your goal is to focus on building your own projects then you're better off finding a dev shop or agency to refer it to. It's perfectly OK to ask for a referral fee, in fact you should insist on one. In my experience the normal rate for a referral is 10-15% of the contract value.
Coming from the civil-engineering background, the concept of sub-consultant is very common. You only cherry-pick the tasks that you wanna handle and sub out the remaining tasks to the other guy. This has multiple benefits: