1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

Sub Cancellation Clause

Discussion in 'Business Fundamentals' started by PerfiCut Inc., Dec 13, 2008.

  1. PerfiCut Inc.

    PerfiCut Inc. Senior Member
    from Eastern
    Messages: 161

    What sort of cancellation / termination clause does everyone enforce on their sub contractors? I see a lot of discussions regarding customer contract terminations and such, but you should also protect yourself from freelance subs who come and go as well.
     
  2. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    We (the company) can fire for cause. We require something written from the sub with a time frame if they want to cancel the work assigned to them. Can't recall the exact details right now. Little tired, got too much sleep last night!
     
  3. KGRlandscapeing

    KGRlandscapeing 2000 Club Member
    Messages: 2,660

    written agreement canceling and that the sub finishs the days work assignd Other then that screen your subs better and jut have good communication with them.
     
  4. PerfiCut Inc.

    PerfiCut Inc. Senior Member
    from Eastern
    Messages: 161

    Your kidding right? I screen my customers good and yet I still use a contract with them. Hmmm. Ok then.
     
  5. KGRlandscapeing

    KGRlandscapeing 2000 Club Member
    Messages: 2,660

    All you askd about was canceling the contract nothing eles.
     
  6. PerfiCut Inc.

    PerfiCut Inc. Senior Member
    from Eastern
    Messages: 161

    Of course as the account holder I always reserve the right to cancell the contract (for sub contractors) at my discretion. Be it baised on quality of work, or customer cancellation. However, I need to be sure that if a contractor signs up to service a property, that he/she will not bail. Or atleast, be covered if they cancell on short notice.

    So,I guess, I was looking to see how others ensure their security from sub contractors walking out.
     
  7. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I'm not sure you can. You have to roll with it and fill the void by rearranging your existing routes or hire a new sub to cover it.
     
  8. stumper1620

    stumper1620 Senior Member
    Messages: 222

    If you have a sub doing 10 of your customers and he cops an attitude and is going to quit for what ever the reason.... Do you really think you want to hold a paper out there that says he has to do the job for whatever period until you arrange to cover for him....
    I can see the damages on the properties that would be caused by an attitude over that......
    If he wants to walk.... Let him walk...Preferable after he finishes his route... but, not at the cost of damage due to a bad attitude.....
    If its a good working relationship where you never fail to pay on time... I don't see a sub giving you a hard time in wanting to drop off... If its due to lack of pay, late pay or disagreements... let him go... It could cost you more to keep him around.
     
  9. 4evergreenlawns

    4evergreenlawns Senior Member
    Messages: 552

    Been there done that and this is why I DO NOT use SUBS ever and never again. I only take on work I can serivce with company owned equipment. Just not worth the risk IMHO.

    Obviously from the bunsiness end of things you are hold the contract with the client. The sub owes you nothing nor can you hold him binding to anything after he bails. it is his truck, his insurance, his everything and if he bails good luck on collecting damages you sustain as a result of his leaving you high and dry. No matter how binding you think you make you sub-contractors agreement and they sign it you will always be running the risk that they will bail. Like telling them to keep their truck and plow in working order. How many times have you been hit with the my truck just broke and I can no come in? What do you put in your sub agreement for that???

    Evil part of doing business.

    Best, Ron G.
     
  10. PerfiCut Inc.

    PerfiCut Inc. Senior Member
    from Eastern
    Messages: 161

    I feel sub contractors are "contractors" none the less. They have a responsibility when they sign with us, and that is to perform the work as needed. No different than if they signed with a customer to install a deck. The agreement is layed out, when, how often, and for how much.

    I agree, the "nature of the business" has some enharent risks, such as equipment malfunction, break downs, illnesses and so on. And since we cant make the schedule, it is our responsibility to ensure we and our equipment are ready when it time.

    I feel, if the sub contractor wants the work, he and signs with us, he she be obligated to uphold his end of the egreement.

    I wouldnt take on a small $500 landscape job, only to walk off uncompleted because we just signed a $5000 job.

    Frankly, I'm surprised as contract oriented as this business is, that no one else has sub contracts. Anyone who hires a sub contrctor, I feel, regardless of how well you interview them, or how small the project is, should have some sort of written agreement. JMHO
     
  11. KGRlandscapeing

    KGRlandscapeing 2000 Club Member
    Messages: 2,660

    There is no contract saying he has to show up. If he dosent show up he dosent get paid. And i dont think any sub would sign a contract that said that.
     
  12. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    Yes, they are obligated to show up. Obviously he won't get paid if he doesn't work. If he is a no show he deserves to be fired.
     
  13. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    I have a really well written one, however, the SUB CONTRACTOR can do what he chooses to do and he can bail. I can fire or use him when I need him but he can walk when he wants. He cannot, for 2 years go after any work I have that he knows or doesn't know that I have. Paid good money for it.
     
  14. TPC Services

    TPC Services Senior Member
    Messages: 875

    thats what happens when you have a poor economy and everyone is by a used or new plow to make a little more money and then come to find out how much is involved hour wise. I sure the heck would not sign a contract stating I have to be there, what happens if my equipments is down, what then I have to pay you to use someone else, ( and what do you say to them when something like that does happen!!!
    I keep the right to cut them lose for poor quaility and no show's thats why you have a few extra trucks in reserve to cover stuff like that. Thats why we screen the heck out of you call a couple other companies you used to plow for to check reliabilty and quaility, We pay a little a bit high then the larger boys that want to low ball you. So I really do not have that much of a issue I got guys always lookin to work for us. my only problem is the hand work and am about to go latin with it they show up do'nt B*&** if they do you do'nt know and work there buts off!!

    I have them sign a contract with me stating what my pay rates are and when we pay also Insurance , 1099 and a time line of getting their hrs turn in to us stuff like that and a portion that is a noncompete clause for two years that states they nor can they work for someone that take's over a property we used to service because you never know they could tell someone else about your poperty and that company undercuts you because of them.
     
    Last edited: Jan 3, 2009