Sub-contracting

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elvis_931

Senior Member
Location
Tennessee
I have more work than I can do with me and another electrician and two helpers on the payroll. I am subbing some house wiring to a local electrician who is low on work. I have never used subs before. How should I handle the situation? I have asked for a copy of his insurance already. Is there anything I need from him or to give him? Trying to cover my butt:smile: Thanks in advance.
 
i don't think there's enough profits in residential for you to sub the electrical out and still make it worth the while??? the paper work alone ---insurance and taxes--etc... ??
 
charlie tuna said:
i don't think there's enough profits in residential for you to sub the electrical out and still make it worth the while??? the paper work alone ---insurance and taxes--etc... ??
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Could be he's 'buying' the job to keep his crew together or make the builder(s) happy. If he's got a couple good guys and builder(s), and can afford to lose a bit to keep them for now, it may be worth it in the long run.
 
I dont have to touch the work at all. I dont have to pay more employees labor and taxes. I receive a check; not as big of a check if i were to do the work myself i admit, but it is money coming in. And i dont lose a builder because i cant get to the work.
 
elvis_931 said:
I have more work than I can do with me and another electrician and two helpers on the payroll. I am subbing some house wiring to a local electrician who is low on work. I have never used subs before. How should I handle the situation? I have asked for a copy of his insurance already. Is there anything I need from him or to give him? Trying to cover my butt:smile: Thanks in advance.
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What insurance is he giving you?

Your insurance companies will need to know how much work was sub contracted, depending on what your state laws are. workes comp may apply, and if he does not pay the comp payments, and the state and fed taxes, on his employees, then you may have to pay them, so be very careful to make sure he is paying all the employees liabilities, sub contracting can become very expensive.
 
elvis_931 said:
I dont have to touch the work at all. I dont have to pay more employees labor and taxes. I receive a check; not as big of a check if i were to do the work myself i admit, but it is money coming in. And i dont lose a builder because i cant get to the work.
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Actually, you might be setting up a way for you to lose your builder. If the other contractor does the job faster and more efficiently, the builder will want to take the money you are putting in your pocket and put it in his.

If work is that slow and you have the business, why not just hire another crew, even if it is just temporary?
 
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