Subcontractors vs Direct Labor
Would you consider hiring subcontractors instead of hiring direct labor when talent is hard to find in your local market? My business has had a lot of success partnering with other companies to complete specific projects. In our service area, the collective workload exceeds the workforce so there is a general sense of camaraderie vs competition. What are you seeing and what has worked in your business?Painting Company here: Employees or Subs?
My Texas painting company has been operating with employees since we started. We offer benefits, WC, of course pay taxes, etc. Employees are expensive. Strangely enough, I have also found employees often are harder to keep motivated without constant oversite - they get the work done, but often not as fast as subcontractors, so that cuts into profits as well. I understand that a lot of franchises, like That 1 Painter, and CertaPro, have managers who are employees, but their laborers are 1099 subcontractors they basically treat like employees. The subs wear the company shirts, and work to the company's standards and the managers pop in here and there to check on them. This way the company avoids paying taxes, benefits, etc., and if they are low on work, they have no obligation to keep paying their laborers. This all sounds really nice. With how expensive my labor force and overhead are, I find it hard to be competitive against other companies with a subcontractor business model and still remain profitable. Any other painting companies or similar businesses - what do you guys do?
Paying Subs
I'm starting a home services technician/handyman business in my local area for those really small jobs that general contractors don't typically take on. I'd like to initially hire subs for the work where I share a percentage of the profits with them per job. For those using this model, what percentage seems fair in terms of compensation 60/40, 50/50, or some other type of profit split?
Subcontractor agreements
Happy Thanksgiving! I am subbing out a couple pressure washing jobs in the coming weeks and need some contracts in place with the subs. Would like for them to assume liability if using my equipment, be paid upon job completion and satisfaction, and agree to adhere to high quality standards. Anyone have something I can poach? Thank you!
System to handle subcontractors payments
Hi I’m trying to implement a solution to paying our subcontractors as efficiently as possible. We send out their contracts for signatures and get them on the schedule. We pay each of them 3 draws. The first is on the day they start the second is the day everything is installed (when all the tile have been installed or all the drywall is up and mudded) and the final payment is when it’s completed and inspected for approval. I’m manually uploading the signed contracts, pictures and payment expenses into jobber which takes a lot of time that could be utilized in other areas of growing our company. Currently they are sending pictures through texts and asking for payments which has become a nightmare to keep up with. Im looking for a solution to streamline the process for the subs and for us while being user friendly and easy to navigate for someone that may not be familiar with tech. Does anyone have any ideas? as an add on I would love to incorporate a bonus structure for incentive to complete jobs accurately and in a timely mannerWhat Features Would Be Helpful for Dealing with Subcontractors on Your Team?
Subcontractors can be a powerful way to grow your service business—but managing them smoothly takes the right tools. From scheduling to paperwork to payments, things can get complicated fast if you're relying on spreadsheets or text threads. Here are a few key ideas to kick off the conversation: Insurance Certificate Tracking + Expiration Reminders Making sure your subcontractors are insured is a no-brainer—but keeping track of their certificates and renewal dates can be a hassle. A built-in feature that stores insurance docs and sends automatic reminders before they expire would help keep your business protected and organized. Built-in Payment Processing for Subcontractors Paying subs quickly and clearly is essential for maintaining good relationships. Imagine being able to approve their invoices and process payments right through Jobber—no more chasing emails or juggling payment apps. Subcontractor Availability Scheduling Knowing when your subs are available is half the battle. A shared calendar where subcontractors can input their availability would make job assignment way easier and help avoid scheduling conflicts before they happen. What would you like to see added to help manage subcontractors better? Drop your ideas in the comments—👇You Don’t Need More Hours — You Need the Right People
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