View Full Version : Subcontracting
01-11-2000, 05:28 AM
A question to any who do subcontracting, or sub out work to others: Do any of you have some sort of formal agreement that either yourself or the person you hire out wont steal customers? I am considering subbing out my residential snow customers, but folks I have spoken to think I should have some sort of agreement in place so the plow co doesnt steal the lawn maintenance work as well. Seems it would be an easy way for someone to gain customers. Also, the tree co I do business with for tree removals is talking about expanding into lawn care as well, if I cant, or am unable to, get some sort of assurance that he wont solicit my customers Ill have to find someone else.<p>How do others deal with this potential problem?<p>Bill
01-11-2000, 05:48 AM
I have read that if you sub out to another company. The owner can sue you and that company if something goes wrong. Because they are acting as an agent of yours. Too, if that company does a bad job and you're the one who recomended them it reflects badly on you. Maybe Phil will enlighten us more on the sueing part.<br>Charles
01-11-2000, 06:06 AM
I have few things on sub-contracting, might help ..<p>1. Make sure the sub is insured, get a certificate of insurance (directly) from the insurance company, that proves insurance is in force, otherwise you will be liable for sub problems for damage. Some subs have been known to actually "forge" insured dates, (using white out)and faxing it to you .. so that's why you should make contact with the subs insurance agency "directly" .. and be notified if insurance later expires. Also, "insurance wise" is sub allowed to and be covered as a subcontractor?<p>2. Non-competing subs are best, someone who has no connection whatsoever to your customer<br>base. Look in Yellow Pages under trucking, welders, pavement contractors, painters and so on. <p>As an alternative, have a direct competitor assist you with work whereas you could take his or her customer base as easily as they could take yours!<p>3. Non-compete agreements are tough to enforce and win at in "court" if you have to.<br>Very expensive "lawyer wise" and hard to prove even if you have it in writing .. plus if you have to go to court, that might involve testimony or evidence (invoices etc) from the customer .. which in turn will damage customer relations.<p>Nilsson.Associates@Snet.Net<p><p>----------<br>Phil Nilsson<p>
01-13-2000, 05:11 PM
Your right on Phil!<p>I have a Lawn Care Co., and thats all I do, apply the apps. I do have alot of Landscaper clients that I work for. I always supply them with a Certificate of Insurance, and stand behind my work. If a customer of thiers has a complaint, I follow up promptly to resolve the situation. <p>I agree, you need to find someone who normally does not do the same work.<p>Ken
01-14-2000, 03:05 AM
Sub contracting out sork is handy to take care of some of your overflow work.The trick<br>is to use someone you know well and get on well with.Make it clear from the start that<br>this is YOUR job and that he wouldn't have <br>a prayer in hell of getting it anyway.Keep <br>your subby away from your clients as much as<br>possible.
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