Hiring Subcontractors??

flashme18

i have never subbed out work before. I have no clue how the 60/40 split works among other options.

I have 2 bids I need to make..the jobs are way too big for me to handle, and out of my estimating capability. I need a sub to come in and do the bid for me without stealing the work. Then if that all works out, I need to setup the payment procedures if the winning bid is submitted.


Other issues..i dont have an LLC yet with insurance, biz license..etc...i got lazy with setting up my new business...so i cant do 1099 pay, not like even know how to do that anyway..lol

please help with any suggestions on how to get someone else to do the work for me and for me to make some money off their hard work.

Thanks

dougchips

I would assume that the job is commercial? If so they might want to see your insurance.

What happens if you sub goofs on his estimate (prices to low) and he walks from the job?

I would get your business in order and start with some smaller projects (my two cents).

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flashme18

i have a rough estimate in my mind for the job..so if i think their bid is too low i wont submit it. As far as them walking off the job..the job can be done in less than a week with a crew of like 4 guys. 125/guy x4 = 500/day The 2500 + materials at less than 1000 = 3500 cost. I was already thinking 6000..just want to make sure im not underbidding If they left, they get paid for the work done. and i hire another crew to continue the work.

The other option is being able to hand the bid to someone else and take a cut of the job if the bid is accepted for a referral fee.

Brock

get an invoice from them and at the end of the year give the invoice to your tax lady. she will send out a 1099 even if you haven't set it up as an llc. most importantly remember that the sub will try to hit you for all kinds oof extras. never give them a cent until job has been finished and inspected by you, and tell them any extras no matter how small must be inwriting before they do them or they won't get a penny for it. You have to look at subs as the enemy. you can make money off of them but the will try to stick it to you every time if you dont set the rules upfront.

Sir Mixalot

Get hard copies of their liability ins. and workers comp. ins. from their carriers before they start. This is very important.

genecarp

no relationships, no license, no insurance, GOOD LUCK...its not that easy

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flashme18

concrete..i moved to NJ from VA last year..i still had ads running down there..had a company bid a job for me in Washington DC and i didnt do anything but make a few emails, never saw or met the customer or the contractor who did the work....made 525 bucks on referral