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Subcontracting in the Snow & Landscaping Business

Subcontracting in the Snow & Landscaping Business. Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT 06897 www.harvestlandscapeconsulting.com ed@harvestlandscapeconsulting.com 203.858.4696. Nightmares Yikes!. Why Subcontract?. Financial People Equipment Expertise

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Subcontracting in the Snow & Landscaping Business

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  1. Subcontracting in the Snow & Landscaping Business Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT 06897 www.harvestlandscapeconsulting.com ed@harvestlandscapeconsulting.com 203.858.4696

  2. NightmaresYikes!

  3. Why Subcontract? • Financial • People • Equipment • Expertise • Workloads • Geography

  4. Why Subcontract Financial • Don’t have the cash • Can’t take on more debt • Reduce exposure if job is lost • Sub smaller jobs to free crews • Fix the cost to prevent overruns

  5. Why Subcontract People • Don’t have the right people • Don’t have enough people Equipment • Need Specialty Equipment • Not Enough Equipment

  6. Why Subcontract Expertise • Don’t know or have the experience • Don’t have the license • Avoid dangerous work • Don’t have the right insurance Work Loads • Can’t make the time requirements

  7. Why Subcontract Location of Job • Too far away • Undesirable location

  8. When Not to Subcontract • Only potential sub is a direct competitor • Customer expects you to do the work • When you need the revenue to cover overhead • Potential damage to site doing snow work

  9. Quality Subs How To Find Good Subs • Network • Newspapers • Yellow Pages • Internet • Tradesman

  10. Subs Qualifying the Subs • Insurance • References • Visit their jobs unannounced • See proof of licensing • Get size of company, equipment, history • Competitively priced? • Reputation • Driving records • Web sites • Criminal & credit records

  11. Pricing Pricing Your Subcontract Work • Pass through – no markup • Sub gives standard price – conservative markup • Sub gives volume discount you markup more Note: Beware of the really cheap price

  12. What Limits Should Subs Carry? Requirements • General Liability including property damage • Workers Compensation • Auto liability – property & casualty • Inland marine coverage on equipment, tools, materials sub will have on site • Special coverage’s, i.e. snow plowing, tree work, pesticides

  13. Quality Assuring Quality Work • Written Specs • Meet & review work on the site • Have – on site supervision • Have work in progress meetings • Take the “pulse” of your customer • Have sub understand level of quality expected • Progress/final payment tied to your satisfaction

  14. Operations Attaining Operational Success Communication is the key – Example • Alert sub of pending storm – from long range weather forecasts • Contact sub within 24 hrs before the storm • Contact within 4 hours before predicted start • Notify when to go • Require them to notify you upon arrival on job • Give them feed back after storms • Be sure to get all contact information from your sub

  15. Your Customer Protecting Relationship With Your Customer Prevent sub from talking with customer? • Be careful what information you share • Don’t confide confidential information • Consider having sub wear your uniforms • Consider putting your signs on their trucks • Inform your customer you may use subs • Your contract should have sub provision • *Video or pictures of all jobs pre-season

  16. Safety • Consider setting safety requirement • Hold safety meetings & include subs • Be sure equipment on jobs is safely used • Consider checking OSHA ratings on subs

  17. Subs Relationships with Your Subs • Seek their advice • Set ground rules & expectations up front • Be friends but business is business • Pay your subs according to your agreement

  18. Subs Referrals from Subs • Ask for referrals from their customers • Refer your subs when appropriate

  19. Legal Aspects Dot All the I’s Some Contract Essentials • Names, addresses, contact numbers • Work site location • Description of the work • Start & end dates and any specific timing • Cost of labor & materials or phases of the work

  20. Legal Aspects • Payments • Signatures of those authorized to sign • Special requirements • Consequences for non performance • Consequences for non payment • Consequences for cancellation of contract

  21. Legal Aspects • Guarantees • Safety requirements • Sub-contractor can not sub contract clause • Non compete & confidentiality clauses • Contractor (you) ability to sub clause

  22. Questions?

  23. Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT 06897 www.harvestlandscapeconsulting.com ed@harvestlandscapeconsulting.com 203.858.4696

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