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Sublet the Job or Finders Fee

Discussion in 'Business Fundamentals' started by JMR, Oct 20, 2004.

  1. JMR

    JMR Senior Member
    Messages: 567

    It has been awhile since I have posted, but I have a situation that I'm looking for opinions on. My snow removal operation is not my primary line of business. Snow removal has always been a side business for me. I own a very lucrative 20 year old 9 bay Automotive repair shop. For the last 5 years I have been operating at maximum capacity keeping my 4 trucks and 2 subs plenty busy. Here is my situation.

    I have been approached, by an inside connection, from a large world wide multi billion dollar company to provide snow removal and ice management for one of their office campuses. Without my inside connection this contract would not be possible. The office although not extremely large requires a level of service that is boarding on anal. My insider has provided me with last years figures. Keep in mind that our area only sees 6-7 events per season. For 6 events last year this company spent 40K on snow and ice control for this location. Money is no object to this company, level of service is their primary concern. I do not have the equipment or manpower to handle this job. I have already met with my corporate connection on the job site. At this meeting I had with me a business aquantance of a large lawn and landscape company who could handle this job and provide the level of service that this customer requires.
    I have come up with two options for handling this situation:

    1) I could give the entire job to my business acquaintance, charging him a finders fee payable over the next 2-3 years based on ???? I believe I could still get the contract for him based on my recommendation.
    The snow removal could easily lead to their lawn and landscape business. The company spent over 100K on lawn and landscape last year.

    2) I could sub-contract the entire job to my business acquaintance, he is willing to do this, making myself a nice profit for doing the administrative work and I still may be able to get him their lawn and landscape business.

    Anybody have any suggestions or other options?
    No, I not really interested in getting into the lawn and landscape business.
  2. qualitylawncare

    qualitylawncare Senior Member
    Messages: 502

    I would go with option 2 and sub-contract it.

    This way, if your plow crew increases you may be able to take it over or work together on it? :nod:
  3. JMR

    JMR Senior Member
    Messages: 567

    After careful long thought I have decided to bid the job and sublet it to my business acquaintance. Let it snow!!!!!
  4. SCSIndust

    SCSIndust Senior Member
    Messages: 280

    I was always taught to never turn down a contract. Even if you can't handle it, hire subs. You never know what else it could lead to. Other huge companies might just be calling you next year if your subs do good this year. There are always subs looking for work, and next thing you know you'll never plow again, just pickup the bids and sub it all out.