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General Business Discussions A place to talk about general business discussions.

Working as a sub-contractor


General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 02-16-2007, 08:03 PM
S.P.Martin Lawn Care
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I was approached about doing some sub work. The lawns are all commercial accounts. Preliminary talks are leaning towards an hourly or daily rate of pay, I prefer hourly in this instance.

I consider the guy an aquaintance, known him for a fair number of years as a straight shooter. He works for UPS full time, but never knew he had a mowing business until yesterday. I know the places he is talking about and all are real quality accounts. He has been servicing them for the past couple of years.

He has the typical employee issues and I get the feeling he has been backed into a corner honoring his contracts for the upcoming season. Its 2, maybe 3 days of work each week. I'm leaning on taking it on.

Since sub-contracting is something I hadn't considered before, does anybody out there have any experiences to share, both good and bad, working as a sub? I told him we would need a contract as its my policy. Any clause(s) that need to be included?

We'll be hooking up again next week so I would like to be armed with some good questions for him.

Thanks
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Old 02-17-2007, 06:59 AM
tiedeman
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Well, don't be surprised that if he puts in a non-compete clause in the contract. Another main thing is to make sure everybody has the proper insurance setup and that it's on file with each others insurance company. Make sure that he knows what he is doing as well.
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Old 02-17-2007, 08:44 AM
S.P.Martin Lawn Care
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Good thinking with the non-compete clause. If that's in there, absolutely no deal. Not going to be shackled like that.

Like the idea with the insurance also. No insurance,no deal.

Thanks tiedeman!

Keep the ideas coming folks!
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Old 02-18-2007, 12:00 AM
PremierLand PremierLand is offline
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Do it hourly, figure out your costs and bae it upon that, then add another 10-15% to the hourly rate.

Also, make sure your insurance will cover you working as a subcontractor. If you blast out some windows, his isnurance wont cover subcontractors, and yours better cover your tail, or else plan on spending some dough for windows, car paint, etc.

He will most likely have a non compete clause in the contract, if he makes you sign one. Unless your good freinds and respect eachother and know you wont steal eachothers work. But if he does have a non compete, dont make it longer than 2-3 years.



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