We’ve noticed the same problem that we’ve seen with other specialties. They believe that because their work is focused on one thing, their business operates differently.
A friend called today with a problem. He subbed his work to a general contractor from the east coast to do a job here on the west coast at a government facility.
Now, if you are a subcontractor, it doesn't matter what trade, if a general contractor has hired you to work on a job your obligation is to that general contractor only.
He asked a sub for a quote on a job, and it was higher than expected based on past jobs. When he asked, the response was, "Well, I just wanted to see if it would stick".
This article was originally published in our newsletter, and it garnered more responses than usual. It was loved and hated, so we are posting it here for more to read.
I read an article by a practicing attorney dealing with pay when paid (or pay if paid) clauses in contracts, specifically between general contractors and subcontractors.
I read an article in Entrepreneur Magazine titled “Freelance Nation”. The author discusses the proper tax handling of subcontractors versus employees.
The old law said that the owner could recover 100% of the money they had paid a contractor if it was found that the contractor did not have a valid license.
Many contractors tell me they only use subs to do their work on jobs. But when it comes right down to it, many are claiming employees as subs.
A question I hear all too often is, "Why should I help educate my competition? I'd rather they went out of business so I got the work."
Quick question here: Has anyone been using a reward/penalty system in dealing with other contractors on your job sites?
In the last month I’ve heard from more specialty contractors having problems being paid by generals than I’ve heard in years.
In another post, Larry Steward commented: “Related to jump starting new leads, in addition to advertising, is to get your sub contractors to refer. Most subs are delighted to be assigned to one of our projects but I have to constantly remind them that this process is a two-way effort. I encourage them to look […]
A contractor called recently with a question about a homeowner complaint that some of their liquor has been stolen (just the liquor – the bottle was left behind).
My biggest challenge as a residential remodeler is obtaining and keeping qualified and experienced sub-contractors willing to do smaller type projects.
We keep hearing complaints about sub-contractors that don't show up on time, if at all. You need to take the time to explain the importance of being on time.
If you are a general, and you want good subs, treat them well.