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Subcontractor Questions

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Old 07-10-2019, 08:47 PM   #1
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Subcontractor Questions

First time hiring subs. Should I ask them to send me proof of worker's comp and general liability?

Also, how much do you normally mark up their work? I'm considering I'll have to drive out and meet them for the estimates, be there to direct and oversee while they're doing the job. No idea how to charge for my time here. Any other things I should know? Much appreciated.
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Old 07-10-2019, 09:20 PM   #2
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Re: Subcontractor Questions

Always get WC clearance and proof of insurance.

Markup varies, but around here it's 15-25 percent.

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Old 07-10-2019, 09:42 PM   #3
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Re: Subcontractor Questions

Originally Posted by inner10 View Post
always get wc clearance and proof of insurance.
always always!!!!
220...221...whatever it takes!
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Old 07-10-2019, 11:15 PM   #4
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Re: Subcontractor Questions

Like said above. If you have to be there to oversee and direct your subs there is a problem. It's one thing to go over the job with them or deal with questions or problems. If a GC tried to oversee and direct my work he would be looking for someone else to do his work. No good sub would put up with that IMO.

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Old 07-11-2019, 07:44 AM   #5
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Re: Subcontractor Questions

As already said. Get proof of WC and General Liability before they start work. If they are a one man operation and say, "I don't need WC." Don't hire them until they get it. If they don't have it, when you get an insurance audit, they will make you pay WC on them. Some states may be different. It's also not a law. The insurance companies have in their policies, that's the way they interpret it.

As far as mark-up. As said above. Make it worth your time.
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Old 07-11-2019, 08:24 AM   #6
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Re: Subcontractor Questions


My first big job in a nice area ( a 1920`s house in coral gables)
$55,000 project , i had hit the big time!!
had all the subs there in the midst of the job, and a couple day-laborers, and a carpenter.

all of the sudden , i saw 3 cars pull up quick , men get out quick with badges and name tags
guy walks up , and says " who`s in charge"
i say i am .
he says ( no lie here ) , " we`re with the workmans comp office .i want to check out all your guys . anyone on this job not on workmans comp will be $1000 fine per man"

thank god , and this is a little funny/sad , the 2 laborers ( home depot specials) ran out the back , and disappeared. they thought it was immigration.
so i ended having only one guy , not covered by my workers comp, electrician ,and plumber had their guys covered .
the guy in charge said " come down tomorrow to my office"
scare the crap out of me !! i was only about 29 or 30.
he made me pay the $1000 , then explained that i can pay guys through employee leasing companies . the same ones who you get daily laborers or carpenters from will also , take your own guys on their payroll , and you pay them with the mark-up , and they will be covered
he also gave me a list of better employee leasing companies in the area
it cost about 35% over your actual pay to the guy , but in a pinch it helps if you happen to get the one job , and they require full coverage . , and these companies do your taxes for the employees too.

learned a lot those years
i remember telling my wife " lets just set our contracts up like we`re gonna be sued or nailed very time "
yea , i always kept a folder for all the subs workers comp and liability,

by the way ,
just because you have one copy a guy gave you, doesn`t mean the next job its still active
have him email you a certificate from the liability insurance company , every job , and have the address of that job on that certificate ,
otherwise , its juts a piece of paper.
same with all that stuff.
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Old 07-11-2019, 09:40 AM   #7
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Re: Subcontractor Questions

I have my ins certs sent by the ins agent, that way I know its not been doctored,
some guys will pay the first month get the paper work and never make another payment
Still "Shakin" the tree boss
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Old 07-11-2019, 09:57 AM   #8
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Re: Subcontractor Questions

Originally Posted by Inner10 View Post
Always get WC clearance and proof of insurance.

Markup varies, but around here it's 15-25 percent.
I'd agree with this and add that I always self perform enough work on a project so that I can have one of my own men there on site at all times overseeing subs. Even if he's doing nothing but helping them with housekeeping, material handling, etc. Just include you normal billing rate for this guy on top of the subcontractors charge and your markup.

I've had unsupervised subs say and do some dumb stuff. Have a trusted man of your own there to prevent this.


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