Paying By The Job

SalesMGR1011

Hello
We are a large full service contractor with one of our divisions doing sunrooms. We have always paid our guys by the hour. This year labor costs seem to get out of control. I know a lot of sunroom companies subcontract out per the job. I recently let me lead sunroom installer go and am thinking this would be the way to go. Anyone here have a syatem thhat works in regards to paying by the job and still having them around if there is a service call etc.?

Meetre

sub-contract...with a contract the makes them responsible for call backs.

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Mike Finley

It's called hiring another business and sub-contracting the work to them. You're the GC, they are the sub-contractor.

Works just like hiring an electrician to come do the wiring in your sun room or a plumber to put in the plumbing for a sink in a wet bar in the sun rooms you sell.

That's what it's called and how it should work, of course you'll want to change that around to pretend they are sub-contractors but treat them like employees like everybody else.

SalesMGR1011

I assumed it was no different but wanted to see if anyone here had direct experience in regards to sunrooms and any such systems etc.

Aggie67

I think subbing out is getting more common. Not that it's better. Just more common. I had a relative get one of these engineering tongue and groove floors installed, and the Portuguese gentleman that showed up with his daughter in law (interpreter) rushed it and used nails that were too big and the tongues and grooves didn't mate up perfectly. And to add insult the guy scratched the flooring all up trying to move the fridge back. My uncle asked the guy to fix it, and the guy pulled out a piece of wax and started filling in the gouges with wax. After seeing that, my uncle called the folks he bought the floor from, they came out, and he's getting a new floor installed. That's a lousy sub there for you. If the company had in-house folks, I'm sure it would cost more, but the quality would be there. This guy from Portugal probably gets paid by the job as a sub, and I bet you he won't get paid for this one.

It's a tough racket. It seems that even if you know what you're doing, and you make a name for yourself and have a history of quality jobs, you're still faced with hack competition. There ought to be some mechanism to contact unhappy customers or flooring places or GC's just to get the word out "see, you see where that got you? Call me next time."

J F

Are your new "subs" going to have:

1) their own tools?
2) their own business license & insurance?
3) the ability to set their own schedule (like from 9-3 every day)?
4) other gc "clients" such as your company?
5) etc, etc, etc.

if not...they're still going to be looked at as employees by the irs, if/when push comes to shove.

J

p.s. the irs probably won't want to hear about how everyone else is doing it if you get busted

SalesMGR1011

Yes to the first four

no to 5

thom

There is no law against paying piece work for employees.

If they really are employees, you may dig yourself a hole. Once you start paying them as subs, but continuing treating them as employees, they have you over a barrel.

DavidC

agreed, no law agasinst piece work pay. But at least in my state you still have to track hours and follow the laws governing overtime.

To the OP, any reason why now you are getting beat up on the labor? I would be looking for the cause to your effect.

Good Luck
Dave

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SalesMGR1011

I have tracked the problem and corrected it. I had always wanted to look at doing piece work but when I arrived the employees that were doing it had been instilled there life at that compnay was for an hourly wage. This recent events have put me in the position to make the transition to piece woek much easier.

Chris Johnson

Piece work is fun!!! It seperates the men from the boys. It's how I got started. I worked hourly for 2 months and was put to piece work 2 months later I was working for other contractors and 4 months after that the guy that originally put me on piece work (The boss) was my employee. I haven't looked back and don't regret it one bit. If I want a day off, I take it, if I want to work 14 hours today, I do that too.

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