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Please advise on subcontracting

Discussion in 'Introduce Yourself to the Community' started by snow2011, Oct 19, 2011.

  1. snow2011

    snow2011 Junior Member
    Messages: 11

    Hi, I got a call today from a retired guy that wants to subcontract my snow removal clients ( all residential) I never ever did that before, I have no clue on how that works, how much to pay him or how to do all this!

    I hate doing snow so Ithink it will be a good idea to have him do it ( with his own truck/plow) of course if is beneficial to both of us.

    Any advice Pro's? :salute:

    Thanks!
     
  2. tonylillo

    tonylillo Senior Member
    Messages: 115

    I had a guy call me and he is willing to pay me $75 per hour as a sub. That is in North NJ I am not sure what the going rate in your area would be.

    Thanks, Tony
     
  3. THEGOLDPRO

    THEGOLDPRO PlowSite Veteran
    Messages: 3,136

    I pay my sub $50 per hour, He has an f350 pickup with an 8 foot plow. If he had a salt spreader i would give him $65 per hour.
     
  4. snow2011

    snow2011 Junior Member
    Messages: 11

    Thanks Tony, what are the advantages and disadvantages for both parties? I am so new in this area.
    thx
     
  5. tonylillo

    tonylillo Senior Member
    Messages: 115

    The advantage to the contractor is that he does not have to have insurance on the driver as I carry all of my own insurance.

    The benefit to me is that I am getting $65 an hour and i did not have to go around hawking jobs. This is also my first year plowing and from everything I have heard it is a good idea to sub for someone for the first couple of years.

    Thanks, Tony
     
  6. s. donato

    s. donato Senior Member
    Messages: 314

    Tony 50-75 is pretty normal for our area. The last couple years i subed for around 75 and thats what i pay to a buddy if. They help me out and what they pay me for helping out.
     
  7. snow2011

    snow2011 Junior Member
    Messages: 11

    does this rate includes if a sub is bringing some help? or that have to pay separate?
     
  8. snow2011

    snow2011 Junior Member
    Messages: 11

  9. s. donato

    s. donato Senior Member
    Messages: 314

    Snow2011where are you? I am on the mobile app.

    Usually the price I pay is for one truck & one driver. If you had a shoveler with you I know that would warrant more money but probably not more then 25$ per hour more. I do all my own shoveling as most of my accounts don't warrant more then 5 mins of shoveling. So to me not worth paying a shoveler to just sit in the passenger seat.
     
  10. mpgall26

    mpgall26 Senior Member
    Messages: 228

    Do I have to have workers comp if I have a shoveler or another plow as "a sub". I thought of using plows with their own commercial insurance, and my GL to cover slip and falls. Now i'm being asked for workers comp proof.
    This is my first season and I was trying to avoid a payroll, comp, withholding their taxes etc.
     
  11. snow2011

    snow2011 Junior Member
    Messages: 11

    I am in Boston Ma
     
  12. s. donato

    s. donato Senior Member
    Messages: 314

    Mpgal

    You will always need to have subs covered under your wc policy. Unless they have wc on themselves. Atleast that's what the case is in nj. However alot of guys do the cash thing to avoid these added costs which makes it hard for the honest guy to make a buck. Somestates allow for owner exclusions but many do not allow for them.
     
  13. mpgall26

    mpgall26 Senior Member
    Messages: 228

    Thanks, sounds good. I assume with a comp policy in place it is general and not specific since today may be one guy and another someone else working as a sub. I don't know that it will always be the same people working with me. They quoted me on an "as is" policy in mass and then audit at years end to report wages, probably be $0 actually since I plan on doing the majority myself, but I need proof of comp for contract.
     
  14. s. donato

    s. donato Senior Member
    Messages: 314

    That's the best policy to have I have the same. Its easy to set up with a minimum cost. Just make sure you know the rate to put aside if your subs aren't covered with their own policy.