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Hiring employees vs. sub contractors

1985 Views 2 Replies 3 Participants Last post by  festerized
So it's the age old debate between my father and myself. We have a huge workload this year with one of the biggest projects being an hour and a half away. I will be running most of the "northern jobs". While he will fill in and also run our bigger "southern job". Currently we have a framer with 20 years experience and an over paid laborer who thinks he has 20 years experience. Subbing out jobs is how we do most of our work framing, plumbing electric, masonry roofing etc. but now I need help framing some Reno work and additions I could really use some help and subs are great but work on their own schedules. At one point we had 10 employees and did almost everything in house but with the economic slow down we saw many guys left or were laid off.
My main question is if you could hire more guys or sub more out which would you choose and why. My father doesn't want to hire guys and the. Lay them off and have them collect unemployment but sub contractors really kill our margins. What's your opinions?
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So it's the age old debate between my father and myself. We have a huge workload this year with one of the biggest projects being an hour and a half away. I will be running most of the "northern jobs". While he will fill in and also run our bigger "southern job". Currently we have a framer with 20 years experience and an over paid laborer who thinks he has 20 years experience. Subbing out jobs is how we do most of our work framing, plumbing electric, masonry roofing etc. but now I need help framing some Reno work and additions I could really use some help and subs are great but work on their own schedules. At one point we had 10 employees and did almost everything in house but with the economic slow down we saw many guys left or were laid off.
My main question is if you could hire more guys or sub more out which would you choose and why. My father doesn't want to hire guys and the. Lay them off and have them collect unemployment but sub contractors really kill our margins. What's your opinions?
Excellent question -sure alot of guys have different reasons..I have struggled with this also..

I have a combination- i have 3 employees and i have 3 subs i sub jobs out to..I have to watch the jobs more closely with my guys but they are more profitable than the sub jobs i give out..i also save on ins and WC when i sub jobs out..

The sub jobs allow me the freedom to farm for different stuff which i like..I think i will continue in the hybrid model..

like to hear from some other guys
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