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Sub contractor stole job

15319 Views 136 Replies 45 Participants Last post by  Jerrie
I own a fence installation company. I had a subcontractor install a $7000.00 job for me. The customer called the day of install and wanted another $5000 worth of fence. The sub undercut me and installed the job. I currently owe this sub $1200 for another job. What would everyone do?
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I'd keep it. Not hire him again. Sign a no compete contract with any other subs you use.
Keep it? Its not yours; he did what he was hired to do. But fire him and not call him again? Maybe; depends if he can make you money in the future or not. If you know he cant then buh bye. But dont be a thief because he valued short term money over a long term relationship. Perhaps he took the job cause he had a feeling you were looking for a reason to stiff him already?
Eric, you would be wrong for keeping it. That is theft of services.

As for the OP. What does your contract say? No Contract? No Clause? Sounds like you learned your lesson.
the ho honoured your original contract, no?
and decided to go with someone else for another job,no?
and went with someone you sometimes give work to, no?
wheres the problem?

i don't think you own him.

you bid, he bid, you lost, suck it up
I own a fence installation company. I had a subcontractor install a $7000.00 job for me. The customer called the day of install and wanted another $5000 worth of fence. The sub undercut me and installed the job. I currently owe this sub $1200 for another job. What would everyone do?
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He has made close to $80, 000 off me this year. He does have a noncompete and you can bet that if they hit a water line while digging they'd be trying to use my insurance since I supply that.
I'd pay the man and never give him another job.
So if they have a non compete, what is the penalty for competing?

Pay him the $1200 and terminate your relationship with him. Also, if you have good relationships with other contractors, don't be afraid to tell the truth about why you guys no longer work together if you're asked.
kuke0020 said:
He has made close to $80, 000 off me this year. He does have a noncompete and you can bet that if they hit a water line while digging they'd be trying to use my insurance since I supply that.
Pay him and then loose his number. I had a sub try to do that to me. I found out that every time i left the job he was giving out his card to everyone he could and saying he could beat my prices. I just don't use him anymore, and neither do any of the guys he tried to weasel from me
1st Pay him what you owe him...


If ya'll haven't already had a talk, now's the time.

I use a couple of Subs regularly. We have a good understanding about this kind of thing. If someone approaches him about a fence while he is working on one of my jobs, he hands them my business card.

If they pressure him to go around me, he politely tells them that he's not willing jeopardize the relationship he has with me, for one job.


If he refers them to me and they buy, I make sure he gets to install the job, and also give him a little extra $$.

He knows that I take care of him, so he takes care of me.


If he's not will to take care of you, send him down the road.
How do you supply insurance for a sub?
you can bet that if they hit a water line while digging they'd be trying to use my insurance since I supply that.
I think I'm going to just pay him and then make an example of him. What pisses me off though is I've taken care of this guy. I've paid him ahead a few times when he needed money.
You can have liability insurance extend to subcontracted services.
How do you supply insurance for a sub?
Thanks for the lesson. I already know that you can, but why would you. If they are legit, no reason to extend anything to them.

Sorry, that sounded bad...just meant "How" as in what would be the reason for it.
You can have liability insurance extend to subcontracted services.
Never do something for someone as a favor and expect anything in return.
I think I'm going to just pay him and then make an example of him. What pisses me off though is I've taken care of this guy. I've paid him ahead a few times when he needed money.
Words to live bye .
TNTSERVICES said:
Never do something for someone as a favor and expect anything in return.
No idea.
Thanks for the lesson. I already know that you can, but why would you. If they are legit, no reason to extend anything to them.

Sorry, that sounded bad...just meant "How" as in what would be the reason for it.
The main reason I do is so that just in case something happens I've crossed all of my t's. The extra $200 a year is well worth it to prevent someone from finding some loop hole and me losing everything. The subs are required to have thier own liability and commercial auto.
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