Sub Contracting Work Out

Discussion in 'Lawn Mowing' started by kalyeah, Jul 7, 2004.

  1. kalyeah

    kalyeah LawnSite Member
    Posts: 146

    Hello guys, been mowing for several years now. Lately I've been turning down a lot of work that I don't do. Tree work, stumps, ferts....etc. Anyways, I'm thinking I need to subcontracting some of this work out. Looking for advise. Do I need to get contractor to sign a no compete contract to make sure they don't move in on my work? What type of percentage should I ask for? 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? Any input will be appreciated.
    Thanks in advance,
    Kevin
     
  2. kalyeah

    kalyeah LawnSite Member
    Posts: 146

    One more question. If something happens while the contractor is doing work. Who's insurance covers that. I'm assuming it's theirs and not mine.
     
  3. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    I contract out tree, excavation, and pesticide work. If you sub this work to contractors that specialize in thier field.. what will they compete with you for?

    I try to get 10-15%
     
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    talk to both an accountant and your insurance agent. They can answer a lot of questions in regards to the forms, taxes, insurance coverage, etc.
     
  5. Mdirrigation

    Mdirrigation LawnSite Silver Member
    Posts: 2,769

    . 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.




    Any input will be appreciated.
    Thanks in advance,
     
  6. kalyeah

    kalyeah LawnSite Member
    Posts: 146

    Thanks for the advise. That helps out a lot.
     

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