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workers comp request with contract

Discussion in 'Bidding & Estimating' started by mpgall26, Oct 26, 2011.

  1. mpgall26

    mpgall26 Senior Member
    Messages: 228

    looking for some advice on a contract issue that was unexpected, i'm obviously new to commercial plowing. My new company was awarded a contract today with the request of the condo to be named on liability insurance, no big deal. Then requested workers comp copies too. I am the only person and dont have workers comp. I assume they will think I'm a joke without employees on my payroll and not sure how others have handled this. I honesty am only gonna grab a couple neighborhood kids for sidewalk crew.
    Thanks in advance for any advice.
     
  2. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    what are you going to do when one of the neighborhood kids falls on a slippery sidewalk cracks open his skull and his parents sue you?
     
  3. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    And they are required to have WC. So are you but you can ask the insurer to allow you to opt out as the owner (you typically need to have health insurance to do so.)

    You pay WC based on a percentage of wages paid, those costs should have been considered when bidding the job.
     
  4. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    I love posts like these. Get workers comp. If the person works for you for money, you are required by law to have it. The dept. of industrial accidents is all over the place. They have stopped my guys three times. They check on my policy and they are on their way. Huge fines if you dont have it.....not in the hundreds from what I hear.

    The condo association is checking on it so they dont get sued when one of your shovelers splits his head open like longae said.
     
    Last edited: Oct 26, 2011
  5. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,169

    In Canada if you solely do the work you would be deemed an independant operator and not eligible for WC so why pay into it. You can get a clearance certificate from WC to that effect. By getting someone else to do a portion of the work ie: student/part timer/wife/grandma you become an employer and need WC.
     
  6. mpgall26

    mpgall26 Senior Member
    Messages: 228

    ok ok i didn't realize I had to have it. I thought mostly of paying someone to help who has their own vehicle insurance and my GL would be sufficient. I didn't take into account for shovelers.
     
  7. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    Somewhere there's a a guy who bid based on adult wages with all the attached taxes insurance, etc calling you a lowballer:jester:
     
  8. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Hire some guys from labor ready and have labor ready fax you over their worker comp info... Just inform the condo assc that you sub out the shoveling and show them labor readys cert......but you better use them if you go this route as others have stated above....big fines....
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Didn't you read the memo,it's not called "lowballing" it's now referred to as" bid challenged"
     
  10. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I assume they are a joke for not pre qualifying you and awarding you this work. I also assume you are correct in your assumption.
     
  11. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    Thanks I missed the memo, sometimes I'm politically challenged
    My old Pappy always called it "Leaving money on the table"
     
  12. mpgall26

    mpgall26 Senior Member
    Messages: 228

    I was going to do this property myself, no need for comp. I suppose as a new guy I overlooked the fact that big storms MAY require more people and comp was needed. I planned on having help from another company in these situations. Lesson learned. As for lowballing, I have 1-2GL, 1M-vehicle, LLC ect. So I think I am ahead of the curve by comparison to the lowballer. Simply a new guy trying to get started, and no other employees.
     
  13. basher

    basher PlowSite Fanatic
    from 19707
    Messages: 8,992

    Don't get your panties in a bunch we're just messing around. No really knows what you charged so you could be making a ton.

    If you search the site and as you hang around you'll see this is a common post and a question that gets asked a lot so we tend to joke around to kill the boredom of repeated typing the same answer. Lots of guys think this is a quick way to easy money not understanding the costs and work involved, time spent staking (and the cost of stakes,) repairing landscaping and other possible damage, wear and tear on vehicle, the need for GL, WC and commercial auto insurance, cost of materials and repair inventory for midnight in the parking lot repairs.
     
    Last edited: Oct 26, 2011
  14. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    Sorry, not a great backstroke.

    You knew going into this the need (and your plan) for a walk crew.

    You're welcome.
     
    Last edited: Oct 26, 2011
  15. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    If its like any condo I've ever bid or worked for you can most likely say good bye to the contract. They should have pre-qualified you before they wasted your time. I realize your just starting out but not having employee's, as much as a pita they can be, not having any limits you some times. Trust me, condo places can be one of the best or one of the worst places to do! Your literally trying to please everyone all the time.
     
  16. mpgall26

    mpgall26 Senior Member
    Messages: 228

    Thanks for the feedback. I had all my ducks in line with insurance planning to do this myself. They assumed I would have employees with me,which they should, and we never specifically spoke about it. I'm sure they didn't expect me to tackle an acre myself, although that is my start up plan.
    Frustrating, I know I can do this property pretty easily myself.
     
  17. nepatsfan

    nepatsfan Senior Member
    Messages: 727

    Just get comp....it wont be a huge out of pocket expense without a lot of employees. Just tell them you have very limited help and there is a minimum you pay based upon how much money you spend. I do mine through paychex and pay it weekly. Each guy gets a check and they take the appropriate amount out every week. You will fall under the minimum and get charged accordingly.
     
    Last edited: Oct 26, 2011
  18. mpgall26

    mpgall26 Senior Member
    Messages: 228

    interesting, thanks
     
  19. JTVLandscaping

    JTVLandscaping Senior Member
    Messages: 860

    If you truely think you can do this without employees...then do it
     
  20. mpgall26

    mpgall26 Senior Member
    Messages: 228

    Actually turned down 2 bigger contracts since I wasn't properly prepared to add employees and don't really understand the sub game(or trust it). Other small ones I can do myself and hopefully in the off season get better educated with properly employing people. Spoke with "paychex" and meeting this week to set up accounts, just in case. They do absolutely everything from taxes to comp. They say, just a phone call once a week and payroll is done with taxes,comp,etc paid. They do the account for the winter then start it back up next season.
    Thanks NEPATSFAN. I'll buy ya a beer someday if i'm in Franklin.