In Need Of Some Advice On Sub-contracting

Fusionfab

About 5 years ago i started a welding and fabrication business, and have been pretty steady thru-out the years. About a year ago i preformed a pipe fabrication job for a first time customer, whos in the commercial irragation bussiness. The job went well and was paid promply, since then he has gotten myself more involved in his company. I am a sub-contracor to him, i own my trucks and have all my own insurance, all my trucks are label with my company name. The truck i use to run service calls for his company ive already had to add his company name to. He is now tring to get me to put his company name on my welding rig as well, which im not to sure about. Not to long ago one of his competitors (irrigation company) contacted him for my number to due some fabrication work. He gave them my phone number and i gave the other contracor a qoute on the job, He then ask me if i ever qouted the guy, I said yes i sent out the qoute the same day he contacted me. He is now thinking i should of sent the qoute out on his company letterhead instead of mine, which is confusing to me because im the welder. The way it looks to me is hes tring to make his company look bigger than what it is with my company. Does anyone have any input or suggestions about any of this???

DavidC

I am a little confused, so pardon me if I missed the point. Sounds like you sub for company A, who referred you to company B. Now A wants you to bid to B on his letterhead. You already added A's name to your truck.

If I have this right, I'm thinking that A is starting to treat you more like an employee than a sub, which could have implications for him regarding certain agencies.

Does A suggest your rates to B and/or expect a cut when you work for B?

Do you work indepently for anyone else, either HO's or other contractors?

Do you have your own employees?

One thing I know for sure is that there is only room for one company name on my van. It would have to be a very special arrangement otherwise.

Good Luck
Dave

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Mike Finley

Same sh*t different day. Some turd trying to play the I pay you like a sub but I treat you like an employee game.

Step #1 is take his name off your trucks.

thom

If you work for anyone other than him, his name should not be on the trucks. If he is your sole customer, you could consider it marketing.

Some contractors don't want subs marketing themselves on the jobsite so they don't like lettered trucks. You can solve this issue with magnetics. You could have a set made up to put on only when you are at his sites.

AskForTheSale

Race car team owners receive money to advertise sponsors names on their cars.

What is he paying you?

I thought so.

Take his name off your truck. He is nowhere on the legal documents of your business and therefore deserves no free advertising.

Remodel Bud

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Remodel Bud

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Jason Whipple

I'm having two of my guy's trucks lettered up. They get 100 a month for it. You can't run an add in the paper for much less than that!

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Remodel Bud

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Jason Whipple

These guys aren't subs.

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Remodel Bud

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Jason Whipple

Out of 6 there are 2 that have been great leaders in the field and I like to offer incentives that work to increase their takehome pay but not their taxes.

I offered it to my main guy in the field and #2 spoke up and said he'd get a newer truck if I made him the offer as well. He got the truck; I'm lettering it.

Win/Win

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Historic House Restoration, Cincinnati, Ohio
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DavidC

Man of your word. Not a bad deal either.

Good Luck
Dave

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plazaman

do you still take outside jobs or is he the only source of leads?

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Remodel Bud

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AskForTheSale

Sounds like a good deal for all parties involved.

Just remember, truck insurance coverage for your employees when you letter a truck / vehicle, it now is considered a commercial vehicle in the insurance companies eyes as well as on paper, and if they get in a wreck and do not have commercial insurance coverage, they will be denied coverage.

Depending on where they live, it might eat up half of that 100.00 per/month they receive for advertising to obtain proper coverage.

Grumpyplumber

Pretty damn to cool to see you grow.

Jason Whipple

Actually, it's not. They are mearly getting paid to advertise on their truck, thats it. As long as they aren't hauling things for me and using it for business purposes we're all good!

Thanks Grumpyplumber! Hard to believe its been about 2 years that I've known some of you folks. My time has been well invested by being on these forums and others like it.

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Historic House Restoration, Cincinnati, Ohio
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Remodel Bud

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DavidC

For what I know, at least around my area, most PU's and vans w/o seats are registered commercial with commercial plates issued. It matters not if you are engaged in business or not. Many private vehicles are licensed and insured this way. My vehicles were even before I was in business.

It does seem prudent to check the guys carrier for safety, if need be maybe a rider for your policy would cover it.

Good Luck
Dave

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