I need some advice/info if possible. I have been asked to consider doing "piece work", sort of. The deal is that the Licensed contractor would take a percentage off the top of the job, after he bids it, and then it would be up to me to complete the job in the time that I need to and the balance of the money, less material and what ever help that I would need, would be mine. Basically he says that I would be able to increase my present income by taking on more responsibility. I'm not sure what questions to ask in order to protect myself. I'm presently making $20.00/hr. and have medical coverage too. This is 95% residential work and I'm not sure how much more that I can really make. There has been only one conversation about this and he hasn't given me much info about how much he will be taking off the top. Any feedback?
Piece work ?????
- Thread starter patc
- Start date
- Status
bphgravity
Senior Member
- Location
- Florida
Re: Piece work ?????
Get a lawyer, get everything in writing, and get yourself additionaly insured.
Why not get your own contractors license?
Get a lawyer, get everything in writing, and get yourself additionaly insured.
Why not get your own contractors license?
jimwalker
Senior Member
- Location
- TAMPA FLORIDA
Re: Piece work ?????
Piece work is ok if the guy is giving you a $ amount for each item your doing.
Downfalls are your usually providing all tools,truck,ladders.
I would never go for material comes out first unless you really know and trust him.
Way to protect yourself is get a flat amount for labor per item.Yes if your good and fast and have all the tools you should and must make more.
This usually only works out for top 10 percent electricians that know all the codes and are willing to work long hours.Dont forget you likely pay all reinspects and no vacation pay or hoildays.So if you get $20 now you need to be making equivalent of at least $25 or $30 to make this pay off
[ September 27, 2004, 06:10 AM: Message edited by: jimwalker ]
Piece work is ok if the guy is giving you a $ amount for each item your doing.
Downfalls are your usually providing all tools,truck,ladders.
I would never go for material comes out first unless you really know and trust him.
Way to protect yourself is get a flat amount for labor per item.Yes if your good and fast and have all the tools you should and must make more.
This usually only works out for top 10 percent electricians that know all the codes and are willing to work long hours.Dont forget you likely pay all reinspects and no vacation pay or hoildays.So if you get $20 now you need to be making equivalent of at least $25 or $30 to make this pay off
[ September 27, 2004, 06:10 AM: Message edited by: jimwalker ]
Re: Piece work ?????
His intent is to let me put the material on his account at the supply house,with the thought being that I would keep the cost down so that my return would be higher. He just hasn't set out what his take will be off the top. Have you ever heard of anyone doing it like this before?
His intent is to let me put the material on his account at the supply house,with the thought being that I would keep the cost down so that my return would be higher. He just hasn't set out what his take will be off the top. Have you ever heard of anyone doing it like this before?
jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Piece work ?????
So the contractor is guaranteed to make a profit, even though he's not actually doing any of the work? This whole deal just doesn't sound right to me.
If I understand your post, he bids the job, then hands it off to you, less his cut. So then you have to do the work and pay for the materials, inspections, etc. You're taking the risk here, while it sounds like he is taking no risk at all. He makes money no matter what, whereas you might actually wind up losing money.
I agree with Bryan. Get your own contractor's license and let the skimmer find someone else to do his work for him.
So the contractor is guaranteed to make a profit, even though he's not actually doing any of the work? This whole deal just doesn't sound right to me.
If I understand your post, he bids the job, then hands it off to you, less his cut. So then you have to do the work and pay for the materials, inspections, etc. You're taking the risk here, while it sounds like he is taking no risk at all. He makes money no matter what, whereas you might actually wind up losing money.
I agree with Bryan. Get your own contractor's license and let the skimmer find someone else to do his work for him.
jimwalker
Senior Member
- Location
- TAMPA FLORIDA
Re: Piece work ?????
OK SOME THINGS YOU NEED TO KNOW
He gets a discount for paying on time.
He will be bidding low to get the jobs as he cant loose at any price.
Your in a bad place if he is setting the job price
IF you cant say yes or know at a price per job then run from him fast.
Yes the idea is not new and i did it for over 5 years and did great.But i did the bidding,major differance
[ September 27, 2004, 08:19 PM: Message edited by: jimwalker ]
OK SOME THINGS YOU NEED TO KNOW
He gets a discount for paying on time.
He will be bidding low to get the jobs as he cant loose at any price.
Your in a bad place if he is setting the job price
IF you cant say yes or know at a price per job then run from him fast.
Yes the idea is not new and i did it for over 5 years and did great.But i did the bidding,major differance
[ September 27, 2004, 08:19 PM: Message edited by: jimwalker ]
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- Semi-retired engineer
Re: Piece work ?????
he did very well at it because he was doing homes that were very similar and he got very good at it.
later he quit doing it and took a job at a hospital as a maint electrician. I think he just decided having to hustle so much was not worth the added effort.
I think you will find that medical coverage can be either a major issue for the self employed or not as big a deal as you might think. If you or your family has pre-existing conditions health insurance can be very expensive. OTOH, I know a 50+ year old women who pays only $160 a month for a pretty decent policy with a $1500 deductible (no drug, dental, or eyecare coverage though).
I would urge you to very carefully consider who you buy your health care coverage from. Do some research on the internet about the company before you buy. There is a company that heavily advertises itself as some kind of a benefits association for the self employed that you may wish to avoid after you look into it closely.
You also want to make sure you have adequate liability insurance regardless of whether the GC requires it. remember that liability insurance is not about paying off claims but about having someone else foot the legal bills.
Talk to your lawyer and accountant about setting up your business so you have minimal personal liability. This is not trivial to do and you cannot shield yourself completely
First off I will tell you I am not an electrician and I have no personal experience at what you are suggesting. I do however know at least one guy who did something similar to what is being proposed for you. He worked out a deal with a general contractor where he got paid X amount of dollars for installing whatever electrical hardware the GC purchased for a project.
he did very well at it because he was doing homes that were very similar and he got very good at it.
later he quit doing it and took a job at a hospital as a maint electrician. I think he just decided having to hustle so much was not worth the added effort.
I think you will find that medical coverage can be either a major issue for the self employed or not as big a deal as you might think. If you or your family has pre-existing conditions health insurance can be very expensive. OTOH, I know a 50+ year old women who pays only $160 a month for a pretty decent policy with a $1500 deductible (no drug, dental, or eyecare coverage though).
I would urge you to very carefully consider who you buy your health care coverage from. Do some research on the internet about the company before you buy. There is a company that heavily advertises itself as some kind of a benefits association for the self employed that you may wish to avoid after you look into it closely.
You also want to make sure you have adequate liability insurance regardless of whether the GC requires it. remember that liability insurance is not about paying off claims but about having someone else foot the legal bills.
Talk to your lawyer and accountant about setting up your business so you have minimal personal liability. This is not trivial to do and you cannot shield yourself completely
- Status