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Subcontractor Question

Discussion in 'Business Fundamentals' started by dmjr77, Sep 26, 2005.

  1. dmjr77

    dmjr77 Senior Member
    Messages: 225

    Well it looks like I am going to be taking a lot more accounts this year. Since I have not found another truck yet, it looks like I am going to have to use a freind of mine as a sub contract help. He has his own truck (2001 Ford F250 SD, Diesel) and own insurance. How much should I pay him an hour? or should I pay him by the driveway? I do have 2 small roads that I have to plow this year. I just want to be fair.
    Thank You
  2. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    I would pay him by the hour, not sure what the going rate is by you buy around here it about 50-65/hour for subs.
  3. bigjeeping

    bigjeeping Senior Member
    Messages: 675

    Another subcontractor ?

    Does GL insurance cover subcontractors or just employees?
  4. Grn Mtn

    Grn Mtn PlowSite.com Addict
    Messages: 1,644

    you might find it easier to pay him by the job, somewhere between 40%-60%. The more you pay the more responsible he is for the accounts. Like staking them in the fall and cleaning up in the spring. Since he is using his truck/gas/insurance I would lean toward a higher number. However, does your insurance cover using subs?

    When I subbed I was paid by the job- the faster I plowed the more time I had for my own stuff. Being paid by the hour has its disadvantages, the only way to make more money is to work slower.
  5. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Thats a very good point, Good thinking Grn Mtn.

    TRUE TURF LAWN Senior Member
    Messages: 290

    i would pay him by the job give him 70% of the price. :waving:
  7. snowman4848

    snowman4848 Junior Member
    Messages: 11

    hey turf

    Do u need any subs..... i have a 04 F250 8'6" v-western with no commitments yet....

    FIREMAN Q Senior Member
    Messages: 242

    now what if your sub will only be doing driveways. Would you still give them 40-70% of each drive or would you pay him hourly??????