Sub Contractor Pricing

Discussion in 'Hardscaping' started by LandscapeMember, Mar 10, 2007.

  1. LandscapeMember

    LandscapeMember LawnSite Member
    from NJ
    Posts: 32

    I do not know if this topic has been covered. I did a search and nothing relevant came back.

    I am looking for feedback for Sub Contractor Pricing in relation to Hardscaping. If I am backed up and have to sub out a job, what are the "normal" charges? I do not square foot price my jobs, but if I sub out, should I set a standard square foot price? For example if I have a flat grade 500 square foot paver patio, I will supply everything, all the sub's crew has to do is show up and install, should it be priced for say $4-5 a square foot for labor? Is this too high/low? We can do the job in 3 days with three guys... is $650 a day reasonable for subs with a crew of three? I do not want to price it by the day, because what if he shows up with 1 guy and takes a week.

    What is your experience in pay scales for subs? Do you have them come out and look over the property and they set a labor price?
     
  2. landscapingpoolguy

    landscapingpoolguy LawnSite Senior Member
    Posts: 819

    I sub for alot of of companies. The problem with subs is that general contractors want to make all the money. Let the sub price it out using his own pricing. Then charge a flat fee or a percentage for the job. You already know what the ball park price is goin to be so you should have a ball park on what you want for the job. I typically give up 5% - 7%. Also let the sub bill the customer this way its all on him and nothing on you. It will make for a better relationship down the road.
     
  3. cgland

    cgland LawnSite Bronze Member
    Posts: 1,929

    If you set yourself up with a quality contractor and build a relationship w/ them you should never have a problem. Besides, if the sub bills the customer how are you supposed to make your %?

    Chris
     
  4. landscapingpoolguy

    landscapingpoolguy LawnSite Senior Member
    Posts: 819

    You charge the sub the %. I pay out GC's upon recieving a deposit from the customer. Never before any $$ transactions. Just the way I do it. Lets say the customer has a discrepency with the job and doesnt pay the GC. Then the GC doesnt get paid and the sub doesnt get paid and there goes that relationship. Lets say the customer is dragging his feet paying. Then there is a payment delay that can cause tension between the sub and the GC. Too many hands in the cookie jar is never a good thing. Also if the GC bills the sub for the work, the customer doesnt feel like hes being overcharged because he knows the GC is just talking a cut.
     
  5. cgland

    cgland LawnSite Bronze Member
    Posts: 1,929

    If you have a contract w/ the GC then there shoud be no issue w/ payment. You work for him, not the customer. Besides, how do you enter that % payment into your books? Some people would call that a kickback!

    Chris
     
  6. bumper

    bumper LawnSite Member
    from So. Cal
    Posts: 187

    Interesting. I am a landscape contractor, just bid sod and irrigaition job, she wants a block wall between an adjoining property, I brought in a referral from a good friend though he is not lic. but I can cover under my Lic. Tells me he is going to charge her lic. contractor prices so I can get my end. I say, give her a fair price and do a good job instead. Made me wonder how he has been worked over by contractors prior to getting to me. Far as I am concerned my end will come with a referral for a job well done.
     

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