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How To Pay A Sub Contractor

 
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Old 08-03-2015, 04:48 PM   #1
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How To Pay A Sub Contractor


Hi guys, we have been working with employees for years and are looking to hire a sub-contractor for some of our larger projects. He would be a Tile Subcontractor. Residential Only. Showers, floors etc. How do you pay this person?

By the sq ft and Linear ft? How much is the average?
What about building materials, who typical pays for that?
What is the average sq ft charge on the east coast, Northen Va / DC

Thanks a ton for your help. Payroll taxes are so high.

Mike
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Old 08-03-2015, 04:51 PM   #2
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Re: How To Pay A Sub Contractor


Quote:
Originally Posted by Michael123 View Post
Hi guys, we have been working with employees for years and are looking to hire a sub-contractor for some of our larger projects. He would be a Tile Subcontractor. Residential Only. Showers, floors etc. How do you pay this person?

By the sq ft and Linear ft? How much is the average?
What about building materials, who typical pays for that?
What is the average sq ft charge on the east coast, Northen Va / DC

Thanks a ton for your help. Payroll taxes are so high.

Mike
Ask them for a quote.

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Old 08-03-2015, 04:52 PM   #3
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Re: How To Pay A Sub Contractor


Most take a business check.
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Old 08-03-2015, 04:56 PM   #4
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Re: How To Pay A Sub Contractor


Thanks, I need to know the going rate to pay the sub and who usually pays for materials, the sub of the contractor?
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Old 08-03-2015, 05:02 PM   #5
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Re: How To Pay A Sub Contractor


That's between you and the sub to hash out.
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Old 08-03-2015, 05:07 PM   #6
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Re: How To Pay A Sub Contractor


Thanks for your reply. I am looking to find out what a fair rate is. What is considered average?
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Old 08-03-2015, 05:08 PM   #7
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Re: How To Pay A Sub Contractor


How to pay: Check.

How much to pay: What's on the invoice.

When to pay: When you get the invoice.




YOU don't set the price, the sub does.
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Old 08-03-2015, 05:12 PM   #8
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Re: How To Pay A Sub Contractor


5 bucks a square foot for a sh!t job, 9 bucks for a good one.
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Old 08-03-2015, 05:16 PM   #9
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Re: How To Pay A Sub Contractor


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Old 08-03-2015, 05:18 PM   #10
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Re: How To Pay A Sub Contractor


Thanks. That's exactly what I needed to know so I go into the conversation knowing what to expect.

$9 per sq ft, do most subs pay for the building materials like backer board, grout, caulk, thin set etc?
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Old 08-03-2015, 05:23 PM   #11
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Re: How To Pay A Sub Contractor


Quote:
Originally Posted by Michael123 View Post
Thanks, I need to know the going rate to pay the sub and who usually pays for materials, the sub of the contractor?
Your title reads tile and you cant figure out what the rate is or dont know material/labor prices. Like Aaron said tree fiddy is fair for both. Thats what I pay
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Old 08-03-2015, 05:29 PM   #12
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Re: How To Pay A Sub Contractor


You said "payroll taxes are so high"

Does this "sub" not pay payroll taxes? Wouldn't those get passed on to you?
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Old 08-03-2015, 05:31 PM   #13
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Re: How To Pay A Sub Contractor


Hi KingCarpenter and Aaron.

What I am hearing is that since every job is different, there are different sq ft rates for different jobs. Showers different than floors. Small jobs may be a higher price etc.

What is tree fiddy? 350 per job, flat rate?? Labor and materials?

I appreciate it. Just got the class a license last year and I only know how to pay by the hour.....and that ain't going so good. Business is excellent but not making enough $
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Old 08-03-2015, 05:35 PM   #14
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Re: How To Pay A Sub Contractor





Tree fiddy.

Means you're not going to get a going rate number on here. Too many variables from one sub to the next, not to mention one region compared to another.

Call up a couple tile subs and ask for quotes. That will give you some idea of going rates. Sometimes I end up with projects that have sub trades I don't know how to price. Sometimes I will get that sub in during the walkthrough or shortly after to get me a number before I write up an estimate.
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Old 08-03-2015, 05:36 PM   #15
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Re: How To Pay A Sub Contractor


Unemployment taxes are paid by the employer. There is also a mandated employer match on social security and part of medicare. Those are called Employer taxes
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Old 08-03-2015, 05:38 PM   #16
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Re: How To Pay A Sub Contractor


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Originally Posted by Michael123 View Post
Unemployment taxes are paid by the employer. There is also a mandated employer match on social security and part of medicare. Those are called Employer taxes
Yeah, but if your tile guy runs a crew, he has to pay those some taxes on the employees he has, and then passes that cost on to you, the client.
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Old 08-03-2015, 05:39 PM   #17
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Re: How To Pay A Sub Contractor


Aaron, thanks man. I appreciate the straight talk. Makes sense. As I learn, I will probably bring the sub on a few estimates. Tactical advice.

The explanation of employer taxes was just for King Carpenter. Im sure the rest of ya'll knew that.
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Old 08-03-2015, 05:41 PM   #18
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Re: How To Pay A Sub Contractor


I hear you.....what comes around goes around....It all comes back to you somewhere.
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Old 08-03-2015, 05:57 PM   #19
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Re: How To Pay A Sub Contractor


If it's a sub, they will set the price. If it is more than you are willing to pay get another quote
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Old 08-03-2015, 06:09 PM   #20
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Re: How To Pay A Sub Contractor


My subs get paid when they ask for money regardless of what work is completed. Although I'm constantly asking if they need some money. They more often than not tell me no, they want to save some for the end.

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