What is an acceptable % for sub work?

Discussion in 'General Industry Discussions' started by Trinity Lawn Care LLC, May 9, 2006.

  1. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    We have a company that wants to sub a substantial amount of work out to us. He told us what the weekly revenue is from the work. It is all lawn maintenance work. What would be an acceptable or customary % for us to give him of the gross?
     
  2. cwlawley

    cwlawley LawnSite Senior Member
    Posts: 470

    I give my subcontractor 10%, but I have seen some companies give as much as 20%.
     
  3. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    It is a really strange situation. The other company is overloaded with landscape projects and wants us to handle the biggest part of their grass accounts. They will be helping us with employees, maybe even some equipment. We are going to provide trucks, remaining equipment(most), employees, etc. The workload is more than what we can currently handle. We are not going to expand our company just to handle sub work for another lco. However, we are talking an additional 100k - 125k gross on top of what we are already generating. That is just grass, and not including any clean ups, etc. that we will be doing in the fall for these accounts. We do not want to make a hasty decision. Any advice in addition to the % question would be greatly appreciated.
     
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Nothing.

    You want to send me the work or not I don't care but if I do it, I get paid 100%.
     

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