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Subcontracting for a National Provider

Discussion in 'Commercial Snow Removal' started by AllanGBM, Oct 11, 2016.

  1. AllanGBM

    AllanGBM Member
    Messages: 59

    I have seen a lot of ill will on these blogs towards National Providers. My impression is that some of it is earned and some is just misunderstanding on the part of the poster. I am hoping to hear from everyone about a positive experience with a National and/or what could they do to win you over and make you excited about working for one.
     
  2. Philbilly2

    Philbilly2 2000 Club Member
    Messages: 2,632

    :popcorn: No good input, just need to subscribe.
     
  3. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,570

    Why do we need nationals?
     
    snowplower1 likes this.
  4. AllanGBM

    AllanGBM Member
    Messages: 59

    Good question. It isn't that you need nationals but the clients with multiple sites need nationals to aggregate the service. They do not have the resources to go out to the market and secure snow services for dozens or hundreds of sites. Nor do they have the resources or expertise to oversee the work. They look to a national to facilitate that for them.
     
  5. FredG

    FredG 2000 Club Member
    Messages: 2,235

  6. Sawboy

    Sawboy PlowSite.com Addict
    Messages: 1,591

  7. FredG

    FredG 2000 Club Member
    Messages: 2,235

    Question, How does a vendor oversee the site. Last I new the Contractor provided the man power, Equipment, Materials and liability's. What does the Vendor do when the contractor packs up with no notice for non payment. Do you want to be the guy they call??? Don't tell me you would not have questions to why the other guy quit.

    Clients hire you (contractor) as a professional service and should not need anybody to oversee there performance. It's your liability's if the parking lot is safe.

    What resources do you need? You could just go to Homeadvisor and hire a guy that has been FBI checked, checked for leans, Credit checked and reviews from clients that contractors that have done this type of work for.
     
    Mistifier and Michael J. Donovan like this.
  8. Michael J. Donovan

    Michael J. Donovan Head Moderator, Online Communities Staff Member
    Messages: 1,051

    I think this can be a good and helpful discussion if we allow it to be...I give him credit for coming here and asking what can be done, on the nationals end, to win you over and potentially, work for them

    that being said, let's keep the conversation decent and on point and offer your suggestions

    thanks, all
     
  9. AllanGBM

    AllanGBM Member
    Messages: 59

    I am not sure I understand all of your points because it is hard to follow but I will say this:
    No company with multiple sites is going to send out a blank check for snow removal. There must be some controls in place - regardless of the proficiency of the subcontractors performing the work. These large companies just don't have the resources to place these controls in place. It obviously creates a problem if a sub walks off the job for non payment. Why does this happen?
    What you suggest about a company going to Homeadvisor and hiring a guy just isn't feasible in a portfolio situation. They don't have the resources to do this.
    Do you have personal experience with one of these nationals?
     
  10. JMHConstruction

    JMHConstruction PlowSite.com Addict
    Messages: 1,074

    Depending on the contract the business and contractor sign they are essentially writing a blank check that mother nature can only control. The company could decide on a seasonal contract and know exactly what they are going to pay for the season. As a national they can't just not pay for a service the contractor provided just because it snowed too much and his rate is more than the national wants to pay.
     
  11. dieselss

    dieselss PlowSite Fanatic
    Messages: 10,973

    Sorry but I just smell a troll fishing
     
    Mark Oomkes likes this.
  12. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,613

    We do a couple jobs through a nsp and have had good luck so far but it does make me a little nervous. I don't understand when you say these companies don't have the resources to do this. They have store managers don't they? If that manager doesn't know if the lot needs more salt or was not plowed correctly needs the grass cut or mulching done then that person should not be there. Each location is different, one might get more snow or need the lawn cut later into the season and this where I don't feel it's right for someone 600 miles away to be dictating this work.
     
    reedo, Mark Oomkes and dieselss like this.
  13. FredG

    FredG 2000 Club Member
    Messages: 2,235

    o_O o_O :terribletowel:I think I will close this one out on my own. Someone is trying with a big spoon to stir the sauce. Sounds to me by your responses that you don't need our advice. Nsp's are great and should make you very successful. I would definitely not pass on any opportunity to do biz with a NSP. This is the future, Hook up with one as soon as possible. Good Luck. Thumbs Up
     
    MOORE BRIGHTVIEW likes this.
  14. AllanGBM

    AllanGBM Member
    Messages: 59

    I am sure you know that there are many times when given no limits snow costs can be a run away train. That said if you sign a contract with a NSP and you hold up your end of the bargain you should get paid each and every time.
     
  15. AllanGBM

    AllanGBM Member
    Messages: 59

    If your referring to me - what would be the point in me doing that. I am asking the site what would they like to see to fix the situation. What would I be trolling for? With all due respect your comment doesn't even make sense.
     
  16. AllanGBM

    AllanGBM Member
    Messages: 59

    Sorry you feel this way. Apparently you have gotten burned before and I was hoping to hear about some of that because I don't feel like the current status is good for the business. In no way did I post to "stir the pot". Although you were being sarcastic, the future will include NSP's because that's what the client base is asking for.
     
  17. AllanGBM

    AllanGBM Member
    Messages: 59

    Thanks for your comments. Let me give you an example of what I mean by limited resources. There are 2 areas. Let's say you had a quick oil change business with 200 locations spread out over 11 states. If you were to go directly to the market to look for direct contractors it would be a huge project. You would want 3 bids per site - 200 bids. You would get about 50% response so you would need to reach out to 400 companies. This would be done once per year and would require a lot of work. Probably not worth it for a company that understands the oil change business and NOT the snow business. The second area is the over-site. Yes you have store managers. They know nothing about snow removal. They cannot hold the contractor accountable. Maybe you want them to concentrate on running the business and not on managing contractors. Overall your cost for taking on all of this "in-house" might amount to 20% of your total snow spend. Maybe you decide you would rather pay an NSP a 15% mark up to do it instead.
    I also don't think it is right to manage snow from 600 miles away. That is the kind of thing I was asking about when I posted this question.
     
  18. FredG

    FredG 2000 Club Member
    Messages: 2,235

    Do a search on NSP's make sure you got a couple days. There is more post threads on NSP's than you can count. No I didn't get burned, I stopped plowing and boycotted the lot till the manager paid me in full and signed on with me. Frankly this is a sore subject and old news.

    The only way to stop them is to not help them. Have you searched lawsuits and the BBB on these NSP's. You did not have to start a new post for the info you are looking for. And yes NSP's are real, This does not mean there here to stay. This behavior is why we have to have unions and davis baker act. The dishonest like Nsps,
     
  19. FredG

    FredG 2000 Club Member
    Messages: 2,235

    You got a good sales pitch like a vendor, I personally think you have nothing to sell to these fellas here.
     
    dieselss likes this.
  20. LapeerLandscape

    LapeerLandscape PlowSite.com Addict
    Messages: 1,613

    I think that they know they have gotten a bad rap over the years and now they are trying to find a way to m
    I would think the store manager could hold the contractor much more accountable then someone 600 miles away don't you? Keeping the facility in shape is the managers job. If you want to pay a NSP an extra 15% to do that job that's fine but you should know that when we go through a NSP we get an extra 25 to 40 % because of all the extra paper work and bs we have to go through. So how much did you save?