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Subcontractor Rates (Pay)

Discussion in 'Business Fundamentals' started by bristolturf, Sep 26, 2010.

  1. bristolturf

    bristolturf Senior Member
    Messages: 435

    I am looking into subbing out some of my snow plow accounts that are too far away for me to easily service during a storm. Most f them are maintenance accounts. Anyways I was wondering what a general percentage is to pay a subcontractor. If I am getting $60-65/hour for a 3/4-1 ton pick up with a 8 ft straight blade would in the range of 80-85% be fair or is it lower or higher?
  2. 496 BB

    496 BB Senior Member
    Messages: 789

    I know around here subs are getting $65+ an hour but your area could be different.
  3. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    wait. as the primary contractor you are getting 60-$65 an hour? yeah around here subs ARE getting more than $65 an hour. Sounds like a clear case of setting some really low prices and getting more work than you can handle. I love that this is a guy from wisconsin!!!
  4. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    What is this world coming to? :cry:
  5. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    I have come to the conclusion that the world is coming to an end after reading some of these threads on Here....:nod:....:help:
  6. Pushin 2 Please

    Pushin 2 Please PlowSite Veteran
    Messages: 4,582

    Agreed. My STARTING pay for subs is $65.00 an hour, it goes up from there. If your working for $60-$65 an hour, your not gonna make any money after paying yours subs or most likey, you will not find any to work for you!
  7. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    We have guys here billing clients $ 45/hr, personallyI pay my subs $ 50-$ 65 depending on the truck & experience, etc. Most of my guys are at the upper end. I looked at a bid from a school distict (hourly) a couple years ago, they showed me previous years contract they were @ $ 45/hr for a truck, $ 56/hr for a backhoe with pusher & they did a decent job, no salt district does that in house.. The district called to see if I was coming to the meeting I politely told the we couldn't compete with that . I heard through the grapvine that the contractor is finally figruing out that he's not making enough money to make it worth it.
  8. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    We start subs at 65hr 1st season with us using a 7ft plow. Bigger plow and more expierience gets better rates. We pay our site specific guys 70-75% of the value, again dependent upon some things. Be ABSOLUTELY SURE to have them sign a non-compete, even better find a sub who performs a different primary service that won't be as tempted to scoop your clients.
  9. ff610

    ff610 Senior Member
    Messages: 320

    I've got some per hour accounts that I contracted $65 bucks an hour, and I sub some of it out. For example I have 3-4 trucks on the account, and 2-3 of them are mine, and 1-2 subs. We use these as filler jobs to keeps my guys busy, but I'll be honest I make my money on the salt. Typically I wouldn't work for that rate otherwise.
  10. TPC Services

    TPC Services Senior Member
    Messages: 875

    It's Nice to know that a few of you guys on here are getting more like $75-80 an Hr for trucks!! I NOT BASHING YOU ON THAT!!! but here in Iowa you’re lucky to get a job for $75 an hr, most large plowing contractors and small retards that have just put a plow on their truck an decided to go out there an find work are lowballing it an getting more like $55-$60 here. They then pay subs around $50-55. Take up to 45 to 60 days to pay you if you’re lucky to get your money from them. So what do most subs do they pad their hours to you with in reason to make up the differance. if you don't believe that then i'm sorry but you are lost in a world of make believe. I trust no one!! To give me the correct hrs they have preformed on a property.
    . As I have said on may other posts. Most of these clients that these large contractors are getting are of the hourly persuasion so they can low ball the hourly rate & materials and then pad on top to make up the difference up. I have stuck to my guns an have stayed on the high end of the spectrum. We get a few new clients every year not due to our higher price but because of are dedication to superior quality& attaching to detail that has them asking for us Plus they are tired of gettin ramed up they ass on a property that should have cost them $1k to clear it an are getting charged $2,5k instead!! Just look at a proeprty yesterday was told they where charged $40k for the year last year. We have done simular sized ones like that for around $20k ish, an still made a bad ass profit from it!! Lowballers and Greed is what is killing us in the Industry!!!
    Last edited: Sep 29, 2010
  11. Banger

    Banger Member
    Messages: 70

    20 Years ago...I was making 75 per hour including 50% gas allowance and end of the season bonus as sub. 2009-2010 ... I was getting 60 and partial payments and chasing checks :cry::
    Last edited: Sep 29, 2010
  12. ff610

    ff610 Senior Member
    Messages: 320

    I agree with all your numbers here in Iowa! The only thing I do different is pay my subs within a few days following every storm. I also usually have at least one of my pieces of equipment on the site with any hourly sub, but not to watch over them. I've found that if I continue to take care of them, they take care of me too! And no I trust no one either! But they know it's not personal. My company has to be accountable to the property owners, and my reputation is on the line. Every truck, skid, sub etc fills out a log sheet for every job and I collect them after every storm. Plus many of my accounts have video they could pull at any time. Helps keep those guys honest. The smaller jobs I sub get a flat rate for the job, and that helps too. My subs are a vital part of my operation even if only in a small way.
  13. snorider075

    snorider075 Senior Member
    Messages: 316

    Last edited: Sep 29, 2010