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sub contracting contract?

Discussion in 'Business Operations' started by kalyeah, Jan 24, 2005.

  1. kalyeah

    kalyeah LawnSite Member
    Messages: 146

    For those of you who sub out work. What do I need to get from the company I'm contracting the work to. I'm sure a copy of there Insurance. What type of contract does everyone have for sub contracting?
  2. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,868

    before you do anything, talk to your own insurance agent. typically, they have limits on % of work you can have subs do and will also tell you what you need from the subs with regard to coverage.

  3. kalyeah

    kalyeah LawnSite Member
    Messages: 146

    Thank you, I'll make sure I do that. I have to meet with my agent this week anyways since my truck was wrecked into( That's a different thread.) Thanks again. What about contracts? No compete contract?
  4. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,868

    a non-compete for a sub? odds are, you'll receive a less than kind response. if you are hiring good subs, you shouldn't be too concerned. subs are typically subs for a reason and if they have integrity, they don't want to piss off a general. the biggest problem i've had is finding subs that are dependable.
  5. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408

    I have had so many problems with mowing and landscaping subs in the past pursuing my customers that I think a non compete is the only way to go.

    I could be wrong here but, I don't think mowing and landscaping contractors are the same as window or siding installers. Most guys that are subbing landscape and mowing work have their own customer base and the majority of their work comes from their own ability to generate work dealing directly with the customer.

    With the exception of companies that do a lot of new installations, most of these guys see a general contractor they are doing work for as a temporary obstacle and a pita. They often prefer to NOT work for a gc. They only do so to help get through a slow time or to build up their route quickly. But once they get through they could care less if they continue to get work from a gc or not.
    Because I no longer mow or landscape, I could care less if my subs look for additional work on my clients properties. But, if they try to solicit the fert. programs ...we have a problem.

  6. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,868

    great points, david, and you are correct in where i was basing my statements. in my businesses, the subs are specialists who typically have no interest in biting the hand that feeds them.

    i responded with the assumption that he was using subs for services he has no interest in providing (as you alluded to in your last sentence), ie specialized services such as your own (applications-only provider), but you are absolutely correct. in retrospect, i'd say if you can, offer up a non-compete to everyone. if they balk, that might be the warning sign you are looking for.

    thanks, david. great advice for me, too.
  7. tiru

    tiru LawnSite Member
    Messages: 18

    My first year in business work was slow so I decided to contact other LCO's for extra work. One co. I called was over loaded from a new advertising campaign.
    Our agreement was 75% of gross per job with no compete. I used my own equipment and insurance. When they got caught up the owner offered me 8 lawns in an area I had lawns. I kept these accounts for over 10 years until I sold the business. This was beneficial for both of us, he got out of a jam and I made it through the year with 8 long term accounts. The guy is still my friend and over the years we traded many jobs.

    Point is subbing can work well if you find the right person on the flip side, well I think you know.

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