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View Full Version : Handling Subcontractors


godjwood
07-21-2009, 02:38 PM
Hi All-

I don't know too much about gardening or tree work, so I decided to sub these jobs out.

I found some good local contractors to do the work.

I want to be a full service company without actually being the one to provide all the services. I want to just do lawn care and hire other companies to do the other work.

However, I want to bill them all under my company name and invoices, to simplify things for them.

I was wondering how this usually works. What % commission is normal?

I was also trying to figure out how to give them estimates. If I send "my gardener" over (different company) and they do an estimate and talk with the customer, the customer is going to want a quote. Should I tell the gardener to not give the customer the quote and give the price directly to me and tell the customer that I will get back to them on the price?

Or just tell the gardener that I am going to want 10% and let them give the customer the bid?

Think Green
07-22-2009, 01:44 AM
JWood,
Here is a scenario that we use......
We subcontract out large tree work that requires 4-5 men to remove a single tree, cutting, chipping, and stump removal. The Arborist and I get together and work out the fine details of payment arrangements--estimating--billing,etc.
This guy, goes with me to the job site, he looks at the trees, comes up with a bid and I will tack on 20-25% for contacting the customer and my cell phone costs. The billing is done by us, so the % is figured in !
Some contractor's are going to be asking for payment on completion of their job or they may ask for a draft. Either way, if you are doing the ball rolling, then make sure you have the money to pay them when they are through. We bill customers each month for services rendered, however for extra services done, like trees, they pay when completed.
If you have a contract with a commercial establishment, and ;you bill them out once a month. Someone else does the mulching, spraying, etc. Then you need to tell your sub's that they get paid each month after you do. Some aren't going to play that game!!
Either way, there is going to be someone waiting on 30 day money....!!??