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Discussion Starter · #1 ·
Hey y'all.

I've recently come across a good opportunity to sub-contract.
The GC is a great guy(but a hard ass), who has gained alot of respect in the industry. He works hard, shows up no matter what, holds both his employees and the HO's accountable(which means security for everyone).

Only thing is, he doesn't know the ins and outs of alot of aspects when it comes to the construction of the home. This is where I come in.

He's basically looking to sub out large portions of the work to me i.e. the plumbing, drywall, electric, door and window installations, etc. in which I would in turn kick alot of that over to my subs.

He's looking to pay be a proper hourly wage for most of the work that I will be handling but wants to use a flat rate contract on the mechanics, electrical, and such.

Should I hire on as a company employee for my hourly wage or use a sub-contract specifying my hourly rate?

Hiring on as an employee would seem the safest route with the least amount of liability, but then again, taking on some of that liability, which I'm already paying for via my insurance policy, would seem like a good reason to ask for more money.

Any suggestions would be fantastic as he is wanting me to start immediately. Thanks in advance!
 

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JimmyS
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224 Posts
acting as employee?

"He's looking to pay be a proper hourly wage for most of the work that I will be handling but wants to use a flat rate contract on the mechanics, electrical, and such.

Should I hire on as a company employee for my hourly wage or use a sub-contract specifying my hourly rate? "

If you're an employee, he can tell you how to manage other trades, 'cause they'd be working for him. If you're a sub, he should be hiring you for the package of your work and including the subs you control. It sounds like he wants to manage things but save on the markup you'd expect if you were a true sub. If you hire the trades, you need to cover your exposure with a markup.
I'd vote to hire on as an employee, and let him negotiate with "your" subs. If you're the sub/GC, then price the work as you would to any other customer, with perhaps a small break for expectation of repeat business.
Jim
 

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Discussion Starter · #3 ·
Sorry, Jim, that I hadn't thanked you for your advise sooner. I just decided to hire on at hourly...the money is decent and there are alot of hours available...there's also flexibility which allows me to still manage and maintain my business. I'd forgotten how good it feels to work for someone else and have 0 liabilty...or maybe I could'nt truly appreciate it until I'd carried the load myself...and oh yeah, THANKS. :^]
 
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