Taking on Bona Fide Sub Contractors

[Peter]

Thanks for the advice. So if you get the bona fide subcontractors to price the work, do they then write up the job description and price and give it to you, and you add your cut and sent the quote off? What would be a reasonable cut on top?

 

Thanks

 

The easiest way would be to take them pricing with you, both of you look at the job, agree the spec with the client and send the quote in later.

 

Put as much on top as you think the client will pay.

[agg221]

I use subcontractors (not in arb) for delivery of specific parts of larger projects. I obtain a quotation and add a 'handling charge' which effectively covers my time in liaising directly with the customer.

 

It would always be cheaper for the client to use the subcontractor directly as the main contractor - in my case this isn't an issue as part of the role is us undertaking the project management on their behalf (for which we are paid) bringing together a complete set of expertise to deliver the job, which could not be single sourced.

 

The problem you have, as I see it, is that if the whole job could be done by one person/team then if you are adding costs to it you are making it more expensive for the customer to receive the same service, so are likely to be reasonably undercut by someone of equivalent quality.

 

So far as I can see, there are two reasonable approaches.

 

If you see this as a short-term fix during recovery from injury, where the primary aim is to maintain continuity of service and retain reputation, I would look to make your 'on cost' as small as possible. I would look to identify someone local whose range of equipment and quality of work matches your own. I would then suggest an arrangement under which you get what is effectively their standard rate, minus a 'finders fee', so that your charge to the customer is the same as your own would be. This means you will not make very much on the job but it will get you through the short term with a slight drop in income but little 'visual' impact on your business, so you shouldn't affect your customer base. To limit the likelihood of loss of customers, I would visit the site with them in person when they go to quote, then get the quotation directly from them. If you are of the same mindset, and similar companies, although you are competitors there is good potential for this to work - they may need a similar favour in the future, and it gives long-term flexibility for overcoming peaks in either of your workloads.

 

If you are actually looking at something which may be a longer term need as you contemplate growth, I would look to split the job up. E.g. if you offer reductions/removals/stump grinding, I would suggest finding a freelance climber to cover reductions, a freelance stump grinder operator who doesn't climb etc. That way, your division of labour means you are not building a competitor. This is likely to leave you looking at one-man bands and recent start-ups, which increases risk (although they may be able to give you references/photographic portfolios etc). There are several people in this bracket who have advertised their services in the Employment section as being nationally available. By taking this approach (particularly using people who have travelled a fair distance), you limit the potential for competition, since they don't have the capability to take the whole job on. This approach is sustainable indefinitely, but takes more effort, so you would want to make a reasonably rapid assessment as to whether to grow your own company by a head or not.

 

Hope this helps.

 

Alec