What Do I Need to Subcontract

Do you really need a subcontractor? Most likely, yes. Here are some basic guidelines to consider when hiring a subcontractor. Although you make more money yourself, there are also a few drawbacks. Paying your own royalties and insurance is an additional overhead factor, and you lose some of the job security you could have enjoyed as an employee of a GC or construction company. You need to keep a close eye on your cash flow situation because employers are sometimes late with payments and you may not be eligible for UI benefits if business isn`t going well. In addition, you need to find customers with whom you can use your service if you want to get paid, and that alone requires time and resources on your part. Once there, a GC will issue a Request for Quotation (RFP). Tenders list important project details, such as required skills, objectives and project schedule. Sometimes GCs even host a “Meet the GC” event to get a feel for local talent. While you can find a subcontractor for almost any scope of work, there are a few common areas of outsourcing that you need to be aware of. Here are the main pros and cons of working as a subcontractor and how you know if it suits you well compared to the life of a contractor. There are many things to consider before deciding whether or not this style of work is right for you. In an HBR article, Steve King, founding partner of Emergent Research, and author Dan Pink share an important piece of advice: it`s important to give your contractors the freedom.

King explains, “You shouldn`t have to manage a contractor`s work product. If so, find another one. Many agencies and organizations evaluate their contractors. Obtaining excellent grades will go a long way in establishing the level of competence of the supplier company. Before you go out and find a subcontractor, ask yourself a few basic questions. When do you need to hire a subcontractor? Do you need one? As a subcontractor, you will continue to be responsible for managing your time by recording the hours worked and tracking the materials used during the construction process. This means that construction management software is just as important to a subcontractor as it is to a general contractor – through contractors, contractors may want special features that are more relevant to their particular skills. A subcontractor contract protects you from taking responsibility for the subcontractors you hire for your projects. Finally, you need to ask your subcontractor two things to protect your business: – A letter of reference from the subcontractor`s surety company – The subcontractor`s insurance certificate (with rating) Part of your prequalification process should definitely be full disclosure of the size of the subcontractor who wants to work with you. However, things change (inevitably). Submarines are retiring.

New gc enterprises are founded or expanded. Knowing how to hire a new subcontractor is important to ensure your projects stay on track when that time finally comes. It is also important that you inquire in advance about storage. Most CMs will retain 10% of a subcontractor`s salary until the work is completed – or a year later – to cover unforeseen problems after construction. While this is a common practice, it`s always a good idea to communicate it (and the salary structure) from the beginning. You need to know how to hire a subcontractor or commercial contractor. Licensing and insurance as a subcontractor is similar to that of a general contractor. The specific license you need may change, but you are no less bound by licensing law.

You are also unlikely to be exposed to lower standards and regulatory scrutiny. Most customers and prime contractors will want to make sure you have an insurance policy in place before hiring you as a subcontractor. A subcontractor is required to take out its own insurance. Prime contractors often require subcontractors to provide proof of workers` compensation, vehicle insurance, and general liability insurance at certain levels of coverage. The subcontractor usually also needs to add the prime contractor as an additional insured under the policies. 1. Gain construction skills: By the time you`re reading this, you probably already have some of the expertise you need to be in business as a subcontractor for yourself. Contractors and subcontractors must have the right skills to secure contracts and continue to do business. Whether you do plumbing, carpentry, roof construction, cabinet making, tile installation or whatever, you need to be exceptional in what you do. If you are a GC with a tender on one of these websites, we recommend that you exercise your duty of care. Don`t just grab the first suggestion that comes along.

Instead, gather at least three suggestions for comparing options and finding the best subcontractor for your project. All the specialized know-how and willingness to hire subcontractors will save you time and money in the future. .