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Paying Hourly or Percentage for Subcontractors?

Discussion in 'Commercial Snow Removal' started by CK82, Nov 20, 2008.

  1. CK82

    CK82 Senior Member
    Messages: 185

    This season I am going to have a guy (Sub Contractor) take care of some of my properties. The problem is, is that the properties which he will service is going to vary. I feel as a result of this and for other reasons I would like to pay him a set percentage for the properties he services. This way he will work at a good pace, and in the end be working more efficient. On the other hand he may be helping out on some of my larger scale properties which will eliminate the possibility of paying him a percentage of the work he completes. Im looking for some thoughts, opinions, and past knowledge relating to this. What would be a good percentage to pay him, or what hourly rate would I expect to pay him? He has some plowing experience and his own truck with a 7.5ft. Western, along with this he may have a sidewalk guy with him.

    Thanks,
    Chris
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    You could do both. % for the ones he takes care of and then have him clock in with you on the others. As for his sidewalk guy he will need to pay him out of his money.
     
  3. qualitycut

    qualitycut PlowSite Fanatic
    Messages: 24,227

    I subbed for a guy last year and he payed me per lot. I think if you pay him per lot it will be better for you as he will have a desire to complete them faster and not just tool around and take his time. jmo
     
  4. ducatirider944

    ducatirider944 Senior Member
    from Iowa
    Messages: 469

    I would do a percentage on the lots that he totally takes care of, and have a set amount per hour on lots that he helps with. I used to run a framing crew, and tried both ways. I had a crew that we all worked basicly the same hours, and they made way more money on percentage than what they would have made hourly. I also made more money per hour I was on the job, because the jobs got done way quicker.
     
  5. CK82

    CK82 Senior Member
    Messages: 185

    Thats what I was thinking that exactly, "Both". Hourly and percentage. Whats a typical rate for a sub with a 1/2 ton with a 7.5ft. plow with some experience? It seems I am coming in high on my bids lately as well. Any information on rates per plow truck this season. I know it will vary but I have been noticing a lot of low ballers.
     
  6. snow4me

    snow4me Senior Member
    Messages: 126

    So what percentage do you pay your guys? I've been getting residential contracts for large drives that average $40 per plow. I"ve got a neighbor who doesn"t have as many accounts because he didn"t do any advertising like i did and he said he"ll sub for me if i take on more than i can handle. So basically what I'm asking is if he plows for me, making me an average of $100 per hour on my accounts what should I pay him per hour? He's using his own equipment.
    Sidenote:
    Oh yeah he told me he may be called back to work anytime because he builds movie sets so he wants me to do his accounts when he can't plow. The problem there is he charges too little $20 per driveway to most of his accounts and he has 10 drives. If this happens his are going at the very end of my route I told him. We haven't discussed money yet but since he's a lowballer don't you think I should get a higher percentage from his measly charge per drive than I'm paying him?
    I was thinking on my stuff pay him 60% but when I plow for him I want 80%....put it this way I don't do this for fun I want to make some $$$ so if it takes me 3 hours to do his drives and I'm only getting $160 for it so I'm only making $53/hr. Where he should have no problem making $60/hr doing my drives. Sound fair?
     
    Last edited: Nov 21, 2008
  7. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    GV you took the words out of my mouth, well actually you said them before me.

    yeah, what GV said.
     
  8. jgoetter1

    jgoetter1 Senior Member
    Messages: 278

    I pay hourly and agree ahead of time that with 'typical snowfalls' the route should take x amount of time.

    I have had success with this system mostly due to the trust I have with my guys.
     
  9. GFX

    GFX Member
    Messages: 49

    Out of curiosity, how much are you paying hourly for your subs here in the Milw. area?
     
  10. CK82

    CK82 Senior Member
    Messages: 185

    I second that. I would like an idea of the current rates for sub contractors? I was thinking in the area of 70% or so I would pay my sub for accounts he plows.
     
  11. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    When you bid the jobs, you had a time in mind to base your cost on.

    Ask him what he wants per hour. Take the time for the total number of jobs and multiply it by his hourly rate. That is what you pay him per plowing.

    You can raise or lower his rate depending on how you feel. I would decrease the time requried to incorage hime to get done faster. Make sure he has insurance.
     
  12. ducatirider944

    ducatirider944 Senior Member
    from Iowa
    Messages: 469

    Note, I did this with framing, not snow, and it worked good. If he charges $20 a drive for his own accounts and you charge $40, just pay him the $20 for the drives he does for you. This way you are making $20 for doing basically nothing but lining them up and submitting bills, and he make the same as he does for his jobs that he normally does. You will be happy and so will he. Just what I think. It is ultimately your decision to make.