Subcontracting pricing.

Discussion in 'Landscape Architecture and Design' started by PaulJ, Jun 27, 2005.

  1. PaulJ

    PaulJ LawnSite Bronze Member
    Posts: 1,776

    Here's the deal. I am finally keeping up with the mowing schedule but I have several small landscape jobs that people are asking for. some I have bid and gotten the job but most I haven't finished bidding yet. My problem is I have about 1 full day each week to do these types of jobs because the mowing and fert/weed routs take up the rest of the time. Some weeks I don't even have that much time.
    I don't have enough work to hire an employee.
    I don't really like doing these types of jobs as much as mowing.
    I am considering trying to subcontract these jobs out to another company.
    How does this usually work? Do they bid it and give me a price, then I add a % for my part and give the costumer that price? How much of a % If I do all the costumer contact? (selling,billing,collecting) Or do they give the customer the bid and I get a kick back.
    How do I set up a no-compete with the sub?
    I am really leary of subbing out the work because I am very particular about details and sort af a perfectionist.
    I have two guys in mind to hire as subs.
    The first one is a company I used to work for and are pretty big. I Don't think they will even want to mess with these little jobs, but I have known the owner for a few years now. the other one is a newer company in town. I think it's a husband wife outfit. I have only actually met them once but they seemed to know there stuff and there works looks good.
    I am not even sure how to approach either one about this.
    Or how much to pay a sub. or mark up there bid.

    Any help or info or opinions on this is appreciated.

    I would like to someday set up a wort of synergy relations with several companies but I just don't know if I've met the right people yet.
     
  2. Popper357

    Popper357 LawnSite Member
    Posts: 217

    These are all questions you need to figure out yourself, what are you comfortable with. If you spend enough time in that frame of mind, you'll answer all your questions you asked, and have put your business far ahead.

    When starting a new relationship with subs, count on not making much money at it and not having the best results up front. It will take time to meet the right people, keep talking about it and it will happen. As with all business metamorphisis, it will cost money but be worth the capital.
     
  3. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    just call and ask if they would be interested in doing contract work. if so, there you go, and make them sign a contract to EXACTLY what you want. Just make sure you tell the company exactly what you want done and your set, if you dont tell him to do something, or a specific way, it comes back to haunt you.

    Im the opposite as you, I only cut one day a week, and landscape the rest, and im still running behind on my landscaping jobs so the new landscape jobs ive been getting I just sub out, and the good thing is that the company that Im contracting only deals with retaining walls and pavers, so I know that if thats all he does, and ive seen his work before, that it'll be up to par and beyond.

    also if you want to try to findsomeone else specific for the type of work you need, ask you local landscape supplier, thats what I did. Im in the landscape store about 15 times a week, sometimes 5 times a day, so they know me first hand, and the owners son does brick work, thus when ever I need to do contract work I ask him, plus it works out good because he is able to do it at a good price because he gets a HUGE price break for materials (free), and if he is booked up and cant do it, he directs me to another contractor he uses when he is booked up.

    anyway hope this helps. to sum it up, try to findsomeone who specifically does what you need done and once the contractor tells you how much he'll do it for, add a percentage onto it, or ask the contractor to just give you a finder fee amount, that way you dont have to deal with the customer anymore, altough then the job cant be reconized as your work.
     
  4. PaulJ

    PaulJ LawnSite Bronze Member
    Posts: 1,776

    Thanks for the input. One problem with the type of jobs I'm talking about is that might be too small for someone to want to do as sub work. I'm talkikng about things like replacing mulch with weedbarrier and rock but only about 3 ton of rock. or remulching landscape beds with a couple yards of mulch or just trimming bushes around a house. planting and mulching a 180 sqft bed.
    HOw much is a typical markup for this type of work. 10%, 20%,2%???

    My wife thinks I should just work faster and more hours. But be sure to be home by supper time.
    Plus we are in the process of geting a differnt house ready to move into. Painting finishing the basement and getting the 2 acre yard in shape.
    I just need a couple more days i a week.
     
  5. JRAZ

    JRAZ LawnSite Member
    from NW
    Posts: 143

    Have you thought about hiring some employees to help with the work load?
     
  6. PaulJ

    PaulJ LawnSite Bronze Member
    Posts: 1,776

    I have thought about hiring but I really want to stay solo. The price of workmans coomp is one reason, the hassel is another. I think I would smpen more time training and watching someone than it is worth.
     
  7. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Posts: 4,369

    Work until 11pm like some of us?......or 1.50am like tonight. Up in 4 hours and 10 minutes.
     
  8. sheshovel

    sheshovel LawnSite Fanatic
    Posts: 5,112

    There's only seven days in a week and nobody can fix it so there are more.If you can't do it sub it or turn the work down.
     

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