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subcontractor questions

Discussion in 'Business Fundamentals' started by snyps, Oct 23, 2007.

  1. snyps

    snyps Senior Member
    Messages: 101

    Does anyone use a contract with their sub contractors? I am thinking something along the lines stating who's liable for damage, and going after current customers? Also I wanted to figure out how to add a clause about not completing the work, or bad service. Does anyone have something they would be willing to share so I have something to work with?

    How do most of you pay sub contractors? I have a few lots and driveways that I am going to have the sub contractor manage for me full time. It is their full responsibility to take care them for the whole season.

    The way I did it is that they gave me a cost to cover the season and we marked it up by a small percentage as a management fee type thing. They will be doing this while taking care of their own contracts so it was hard to pay them by the hour.

  2. snyps

    snyps Senior Member
    Messages: 101

    Wow, no input?
  3. Snowpower

    Snowpower Senior Member
    Messages: 636

    For a legitimate (On the ball) operation signing a contract is smart. I used to sign one when I subbed and if I ever need subs I will have an agreement for them as well.

    How to pay? As quickly as possible is all I can suggest.

    I subcontract some commercial accounts to a larger company with the resources in the growing season like that. I mark up the bid around 15% total, and manage the account. They sign a basic agreement. I've seen agreements that would make your head spin. Obviously written by lawyers. Honestly. I dont see the need to go to that extreme.
  4. snyps

    snyps Senior Member
    Messages: 101

    Do you have any recommendations on clauses to add to the contract?
  5. Snowpower

    Snowpower Senior Member
    Messages: 636

    Well without pulling my old contracts out, I would have a non compete clause, although those are generally worthless as is my understanding.

    But they keep rookies honest.
  6. Ozone

    Ozone Member
    Messages: 49

    I am a sub-contractor..and from my experience..take care of the guys who make money for you. Pay them a good wage..and make sure they get paid in a timely manner.

    Lot's of B/S artists out there who talk a good game..but I never got myself mixed up with those clowns. I sat home 3 seasons in a row, cause I refused to settle for.. beating my truck and plow up..for a song and a dance. Word travels quick if you're a B/S artist.

    I actually love being a sub, cause I get paid pretty quick..and get paid an awesome wage. Right now in my snow plowing career, I don't want the headache of being the boss with my own accounts. I'm a Business owner in Plumbing and Heating, and I understand what it means to do a good job for someone. I was lucky to get invited in by a friend to plow for this guy (commercial account)..and me and my buddy run this account for him.
    This guy truly puts the "P" in Professional of how he treats me and my buddy..and how he pays us..and pays us extra on occasion.

    You treat them good..and you will have guys falling all over each other, to get the chance to work and prove themselves to you.

    Good luck to you!
    Last edited: Oct 24, 2007