question/advice

Discussion in 'Business Operations' started by jsfrk, Aug 27, 2004.

  1. jsfrk

    jsfrk LawnSite Member
    from Ohio
    Posts: 126

    Would any of you deal with an independent contractor or person who finds you business?

    For example.

    I may have a shot to work with a company who has contracts with various commercial and residential clients. They mainly offer cleaning services, but they want to become a contractor and sub out those cleaning jobs as well as add a lawn and landscape division. I would still run my own show, but they would find some of the business and let me handle the lawn and landscape contracts. So I essentially become a sub contractor for them, paying them a slight percentage of the jobs that they provide for me. My question is, does this seem like a good or bad idea. It may sound confusing, so if it does, private message me and I will try and clarify it better. Obviously, I'd still find my own business as well.

    Thanks
     
  2. Black95gt

    Black95gt LawnSite Member
    Posts: 56

    I want some advice on this as well. I want to send out a letter of intent and my flyer to all the other lawn services for them to pass work on to me, or sub-contract it out to me as well. But i am with you JSFRK, I dont know if it is a good idea or not, so i would like some feedback as well.
     
  3. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi jsfrk,

    Here are two quotes from posts about this. Maybe they will be helpful.

    "In sub contracting the work I don't have to have workers comp. ins. He maintains his own liability and I mine. Checking tomorrow to see how I'm covered that way. I don't have to deal with withholding's and such. I don't have enough mowing to keep a full time employee but I have other things I do so it would be good to have the help." From this post.


    "Do I need to get contractor to sign a no compete contract to make sure they don't move in on my work?

    Yes , I would if I were you.

    What type of percentage should I ask for?

    You dont ask for a percentage , you bid the work and tell the contractor what you will pay for that job .If you are good at bidding you shouldnt have a problem.

    Have never done this and don't want to cheat myself. Is there a common percentage for all jobs or does it depend on the job?

    That all depends on how good of a salesman you are , You can bid too low and the contractors you sub to wont even do the work at the price you bid, as far as a percentage If I am not making at least 25 % its not worth my time. You are responsible for the quality of the work , collecting payment and paying the sub. If the customer stiffs you you still owe the sub. You will need certificates of insurance and workmans comp from the subs , also naming you as an additional insured. " From this post.
     
  4. HOOLIE

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    It could be a nice way to get work, until you're able to get enough clients of your own.
     

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