Sub Contractors

Discussion in 'Hardscaping' started by M&MLawn, May 8, 2008.

  1. M&MLawn

    M&MLawn LawnSite Member
    Messages: 132

    Hey all,

    So we have a full service landscaping company. We employ someone for $15 an hour. This same someone has his own hardscaping company. We have two current customers that want rock walls put in. One we have already quoted (had our sub give us numbers and we sent over estimate).

    What I am wondering is how you would handle the commission/payment. Would you request 10% from the sub for the job if you do not do it with him? How do you typically think this should work?
  2. M&MLawn

    M&MLawn LawnSite Member
    Messages: 132

  3. JNyz

    JNyz LawnSite Bronze Member
    Messages: 1,087

    I think you need to rephrase you question it does not really make sense.
  4. PlatinumLandCon

    PlatinumLandCon LawnSite Bronze Member
    Messages: 1,315

    Take his price, add your % (10-15 usually), then tell the customer. You can't cut into his price by 10% if you didn't already arrange that prior to him telling you the price, I don't think he'll do business with you after. I assume he has his own tools, etc so he can be legally called a sub?
  5. Mancinioldhorse

    Mancinioldhorse LawnSite Member
    Messages: 69

    Sure his question makes sense...

    If your sub is goiong to be doing all the work and you are subbing the entire job out to him, then just add on your 10-15% (whatever you feel comffortable with)to the final bid...If your company is doing part of the job...Then it would be 20% plus whatever labor & materials your company uses.
  6. JNyz

    JNyz LawnSite Bronze Member
    Messages: 1,087

    No, his question does not make sense. This is how sub contracting works or is suppose to work. The landscape contractor gets the job for $10,000.00. He decides to sub it out for 7,000. The job gets completed. The landscape contractor bills the client 10,000 and sends a check to the sub for 7,000. The sub does not bill or send a payment to the landscape contractor. That is the beauty of being a sub, no sales, advertising or dealing with clients. We do subcontracting on a daily basis.
  7. John Zaprala

    John Zaprala LawnSite Senior Member
    Messages: 283

    Couple things... Absolutely DO NOT ask anything of the sub besides YOUR COST on the job. He bids the job to you, you add 10-25% or whatever you choose based on the area, customer, etc. This was already said, but the customer pays you, the sub understands this is your customer and will not interfere on the side if he's a professional. There is definately some unsaid rules to subbing. Another point to remember when subbing, if a problem arises as a result of your sub, YOU'RE RESPONSIBLE! Sure, you can address the problem with that contractor, but you get that call about problems. Part of earning your percentage is making sure the job gets done right and on budget as your customer expects.
  8. mrusk

    mrusk LawnSite Gold Member
    Messages: 3,260

    First thing you do is get insurance certs from the sub. Then have him price out the job. Then sell the job at what the market will bear.

    When the job is finshed you bill the customer. And the sub sends you a bill. Then you pay up.

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